Cairn Energy Swung to Net Loss in 2018
March 12 2019 - 3:56AM
Dow Jones News
By Oliver Griffin
Cairn Energy PLC (CNE.LN) on Tuesday reported a swing to a net
loss in 2018 after it was ordered to sell its shares in Vedanta
Ltd. (VEDL) by India's Income Tax Department.
The U.K. oil-and-gas company recorded a net loss of $1.14
billion for the year ended Dec. 31, compared with a net profit of
$272.8 million in the previous year.
The company is locked in a dispute with the Indian tax
authorities. Cairn said that being ordered to sell its shares in
Vedanta Ltd. resulted in a $713.1 million loss on derecognition of
the asset. The tax authority also seized dividends that were due to
the company from its shareholding in Vedanta worth $164
million.
The company is currently waiting on an arbitration decision
regarding its dispute the Indian tax authorities. Cairn said it is
claiming compensation of $1.4 billion.
Revenue for the year soared to $410.3 million from $33.3 million
in 2017, Cairn said.
The company said it expects production in a range of 19,000 to
22,000 barrels of oil a day in 2019.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
March 12, 2019 03:41 ET (07:41 GMT)
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