Cairn Energy Swung to Net Loss in 2018

   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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