Loading...

Cairn Energy

LSE:CNE
Snowflake Description

Reasonable growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CNE
LSE
£981M
Market Cap
  1. Home
  2. GB
  3. Energy
Company description

Cairn Energy PLC operates as an oil and gas exploration, development, and production company. The last earnings update was 67 days ago. More info.


Add to Portfolio Compare Print
  • Cairn Energy has significant price volatility in the past 3 months.
CNE Share Price and Events
7 Day Returns
5.1%
LSE:CNE
3.5%
GB Oil and Gas
1.3%
GB Market
1 Year Returns
-36%
LSE:CNE
3%
GB Oil and Gas
-5%
GB Market
CNE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cairn Energy (CNE) 5.1% 2% -18.8% -36% -19.1% -10.6%
GB Oil and Gas 3.5% -2.5% 4.1% 3% 47% -10.6%
GB Market 1.3% -1.6% 1.9% -5% 15.8% 2.5%
1 Year Return vs Industry and Market
  • CNE underperformed the Oil and Gas industry which returned 3% over the past year.
  • CNE underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5% over the past year.
Price Volatility
CNE
Industry
5yr Volatility vs Market

Value

 Is Cairn Energy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Cairn Energy. This is due to cash flow or dividend data being unavailable. The share price is £1.69.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cairn Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cairn Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:CNE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-1.96
LSE:CNE Share Price ** LSE (2019-05-17) in GBP £1.69
LSE:CNE Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.273 $2.15
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PE Ratio Median Figure of 32 Publicly-Listed Oil and Gas Companies 9.44x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 790 Publicly-Listed Companies 16.24x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cairn Energy.

LSE:CNE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:CNE Share Price ÷ EPS (both in USD)

= 2.15 ÷ -1.96

-1.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cairn Energy is loss making, we can't compare its value to the GB Oil and Gas industry average.
  • Cairn Energy is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Cairn Energy's expected growth come at a high price?
Raw Data
LSE:CNE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
136.9%per year
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PEG Ratio Median Figure of 20 Publicly-Listed Oil and Gas Companies 0.7x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Cairn Energy, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Cairn Energy's assets?
Raw Data
LSE:CNE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $2.39
LSE:CNE Share Price * LSE (2019-05-17) in GBP £1.69
LSE:CNE Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.273 $2.15
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PB Ratio Median Figure of 102 Publicly-Listed Oil and Gas Companies 0.85x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.51x
LSE:CNE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:CNE Share Price ÷ Book Value per Share (both in USD)

= 2.15 ÷ 2.39

0.9x

* Primary Listing of Cairn Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cairn Energy is overvalued based on assets compared to the GB Oil and Gas industry average.
X
Value checks
We assess Cairn Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Cairn Energy has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cairn Energy expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
136.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cairn Energy expected to grow at an attractive rate?
  • Cairn Energy's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Cairn Energy's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Cairn Energy's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:CNE Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:CNE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 136.9%
LSE:CNE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 7.2%
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 11.9%
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:CNE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:CNE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 706 373 101 3
2022-12-31 536 318 31 3
2021-12-31 467 313 44 8
2020-12-31 474 271 81 14
2019-12-31 487 287 62 13
LSE:CNE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 410 209 -1,136
2018-09-30 308 114 -745
2018-06-30 205 18 -308
2018-03-31 119 23 -23
2017-12-31 33 29 218
2017-09-30 22 34 116
2017-06-30 11 38 14
2017-03-31 5 9 -41
2016-12-31 -21 -95
2016-09-30 -19 -209
2016-06-30 -18 -323
2016-03-31 -16 -419

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cairn Energy's earnings are expected to grow significantly at over 20% yearly.
  • Cairn Energy's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:CNE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Cairn Energy Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CNE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.02 0.15 -0.10 2.00
2022-12-31 0.02 0.05 0.00 2.00
2021-12-31 0.12 0.29 0.03 5.00
2020-12-31 0.09 0.18 0.01 12.00
2019-12-31 0.09 0.15 0.01 8.00
LSE:CNE Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -1.96
2018-09-30 -1.28
2018-06-30 -0.53
2018-03-31 -0.04
2017-12-31 0.38
2017-09-30 0.20
2017-06-30 0.02
2017-03-31 -0.07
2016-12-31 -0.17
2016-09-30 -0.36
2016-06-30 -0.56
2016-03-31 -0.73

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Cairn Energy will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Cairn Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cairn Energy has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cairn Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cairn Energy's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cairn Energy does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Cairn Energy's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Cairn Energy's 1-year growth to the GB Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Cairn Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cairn Energy Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CNE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 410.30 -1,135.50 98.60
2018-09-30 307.60 -744.55 111.80
2018-06-30 204.90 -308.30 122.60
2018-03-31 119.10 -22.60 106.80
2017-12-31 33.30 217.80 93.40
2017-09-30 22.05 115.75 89.35
2017-06-30 10.80 13.70 85.30
2017-03-31 5.40 -40.65 95.25
2016-12-31 -95.00 105.20
2016-09-30 -209.00 111.90
2016-06-30 -323.00 118.60
2016-03-31 -419.25 122.85
2015-12-31 -515.50 127.10
2015-09-30 -532.40 167.85
2015-06-30 -549.30 208.60
2015-03-31 -465.20 232.75
2014-12-31 -381.10 256.90
2014-09-30 -390.00 272.55
2014-06-30 -398.90 288.20
2014-03-31 -477.40 271.75
2013-12-31 -555.90 255.30
2013-09-30 -369.75 236.10
2013-06-30 -183.60 216.90
2013-03-31 -55.50 214.45
2012-12-31 72.60 212.00
2012-09-30 -565.60 568.60
2012-06-30 -1,203.80 925.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Cairn Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Cairn Energy has efficiently used its assets last year compared to the GB Oil and Gas industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Cairn Energy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Cairn Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cairn Energy has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cairn Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cairn Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cairn Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cairn Energy's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cairn Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cairn Energy Company Filings, last reported 4 months ago.

LSE:CNE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,390.10 267.10 66.30
2018-09-30 1,390.10 267.10 66.30
2018-06-30 1,981.00 296.10 185.80
2018-03-31 1,981.00 296.10 185.80
2017-12-31 2,494.50 199.50 86.50
2017-09-30 2,494.50 199.50 86.50
2017-06-30 2,307.50 221.90 253.70
2017-03-31 2,307.50 221.90 253.70
2016-12-31 2,189.90 0.00 334.90
2016-09-30 2,189.90 0.00 334.90
2016-06-30 2,014.70 0.00 414.30
2016-03-31 2,014.70 0.00 414.30
2015-12-31 2,099.40 0.00 602.80
2015-09-30 2,099.40 0.00 602.80
2015-06-30 2,444.40 0.00 725.40
2015-03-31 2,444.40 0.00 725.40
2014-12-31 2,663.10 0.00 869.30
2014-09-30 2,663.10 0.00 869.30
2014-06-30 3,230.80 0.00 1,073.60
2014-03-31 3,230.80 0.00 1,073.60
2013-12-31 3,187.80 55.30 1,308.30
2013-09-30 3,187.80 55.30 1,308.30
2013-06-30 3,430.60 60.10 1,512.80
2013-03-31 3,430.60 60.10 1,512.80
2012-12-31 3,641.70 29.60 1,588.60
2012-09-30 3,641.70 29.60 1,588.60
2012-06-30 3,493.60 6.00 932.80
  • Cairn Energy's level of debt (19.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1.7% vs 19.2% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Cairn Energy has less than a year of cash runway based on current free cash flow.
  • Cairn Energy has less than a year of cash runway if free cash flow continues to reduce at historical rates of -18.4% each year.
X
Financial health checks
We assess Cairn Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cairn Energy has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Cairn Energy's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Cairn Energy dividends. Estimated to be 0% next year.
If you bought £2,000 of Cairn Energy shares you are expected to receive £0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Cairn Energy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Cairn Energy's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:CNE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 5.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:CNE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.00 1.00
2022-12-31 0.00 1.00
2021-12-31 0.00 3.00
2020-12-31 0.00 9.00
2019-12-31 0.00 9.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Cairn Energy has not reported any payouts.
  • Unable to verify if Cairn Energy's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Cairn Energy's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Cairn Energy has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Cairn Energy's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Cairn Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cairn Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cairn Energy has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Cairn Energy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Simon Thomson
COMPENSATION $2,992,615
AGE 53
TENURE AS CEO 7.8 years
CEO Bio

Mr. Simon John Thomson has been the Chief Executive Officer of Cairn Energy Plc (Holding Company of Agora Oil and Gas AS) since July 1, 2011. Mr. Thomson serves as Chief Executive Officer of Cairn Energy plc and Legal and Commercial Director at Capricorn Oil Limited. He served as Legal & Commercial Director of Cairn Energy Plc since November 17, 2006, also served as Group Head of Assets and Group Commercial Manager. He joined Cairn in 1995 as a lawyer before transferring to the commercial department which he served as Group Commercial Manager. He is Non-executive director of Edinburgh Art Festival. He has been an Executive Director of Cairn Energy plc since November 17, 2006. He has been a Director of Medoil PLC since October 10, 2007. Mr. Thomson serves as a Director of Cairn Energy Bangladesh Ltd., Cairn Energy Birganj Limited, Cairn Energy Dhangari Limited, Cairn Energy Exploration and Production Company Limited, Cairn Energy Karnali Limited, Cairn Energy Lumbini Limited, Cairn Energy Malangawa Limited, Cairn Energy Nepal Holdings Limited, Cairn Energy Search Limited, Capricorn Energy Limited, Capricorn Exploration Limited, Capricorn Oil and Gas Limited, Capricorn Petroleum Limited and Plectrum Petroleum Plc. He serves as a Non-Executive Director of Graham's the Family Dairy Ltd. Mr. Thomson also holds directorships at Capricorn Greenland Exploration 1 Limited, Capricorn Greenland Exploration 2 Limited, Capricorn Greenland Exploration 3 Limited, Capricorn Greenland Exploration 4 Limited, Capricorn Greenland Exploration 5 Limited, Capricorn Greenland Exploration 6 Limited, Capricorn Greenland Exploration 7 Limited and Capricorn Greenland Exploration 8 Limited. He served as a Director of Energy Service Hub Ltd. (Dissolved), Wedge Property Company Ltd. (The), and Wedge Property (Holdings) Ltd. Mr. Thomson holds LL.B. from Aberdeen University and a Diploma of Legal Practice from Glasgow University.

CEO Compensation
  • Simon's compensation has increased whilst company is loss making.
  • Simon's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Cairn Energy management team in years:

7.8
Average Tenure
  • The average tenure for the Cairn Energy management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Simon Thomson

TITLE
CEO & Executive Director
COMPENSATION
$3M
AGE
53
TENURE
7.8 yrs

James Smith

TITLE
CFO & Executive Director
COMPENSATION
$2M
AGE
41
TENURE
5 yrs

Paul Mayland

TITLE
Chief Operating Officer
TENURE
6.3 yrs

David Nisbet

TITLE
Head of Group Corporate Affairs

Duncan Wood

TITLE
Company Secretary
TENURE
20.6 yrs

Eric Hathon

TITLE
Director of Exploration
TENURE
12.1 yrs
Board of Directors Tenure

Average tenure and age of the Cairn Energy board of directors in years:

5
Average Tenure
55.5
Average Age
  • The tenure for the Cairn Energy board of directors is about average.
Board of Directors

Ian Tyler

TITLE
Non-Executive Chairman
COMPENSATION
$175K
AGE
58
TENURE
5 yrs

Simon Thomson

TITLE
CEO & Executive Director
COMPENSATION
$3M
AGE
53
TENURE
12.5 yrs

James Smith

TITLE
CFO & Executive Director
COMPENSATION
$2M
AGE
41
TENURE
5 yrs

Keith Lough

TITLE
Independent Non-Executive Director
COMPENSATION
$75K
AGE
59
TENURE
4 yrs

Nicoletta Giadrossi-Morel

TITLE
Independent Non-Executive Director
COMPENSATION
$73K
AGE
52
TENURE
2.3 yrs

Todd Hunt

TITLE
Non-Executive Director
COMPENSATION
$75K
AGE
65
TENURE
16 yrs

Alexander Ferdinand Berger

TITLE
Independent Non-Executive Director
COMPENSATION
$75K
AGE
52
TENURE
9 yrs

Peter Kallos

TITLE
Independent Non-Executive Director
COMPENSATION
$75K
AGE
59
TENURE
3.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Cairn Energy insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
14. Mar 19 Buy Miles Warner Individual 13. Mar 19 13. Mar 19 15,000 £1.62 £24,310
12. Dec 18 Buy Simon Thomson Individual 11. Dec 18 11. Dec 18 31,812 £1.56 £49,627
11. Sep 18 Buy Eric Hathon Individual 11. Sep 18 11. Sep 18 15,000 £2.22 £33,261
X
Management checks
We assess Cairn Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cairn Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Much Of Cairn Energy PLC (LON:CNE) Do Institutions Own?

View our latest analysis for Cairn Energy LSE:CNE Ownership Summary, May 15th 2019 What Does The Institutional Ownership Tell Us About Cairn Energy? … We can see that Cairn Energy does have institutional investors; and they hold 87% of the stock. … Insider Ownership Of Cairn Energy While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Does Market Volatility Impact Cairn Energy PLC's (LON:CNE) Share Price?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful.

Simply Wall St -

Cairn Energy PLC (LON:CNE): Time For A Financial Health Check

While small-cap stocks, such as Cairn Energy PLC (LON:CNE) with its market cap of UK£996m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … the current state of its operations and pathway to profitability.

Simply Wall St -

Can You Imagine How Cairn Energy's Shareholders Feel About The 31% Share Price Increase?

Given that Cairn Energy didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … When a company doesn't yet make profits, we'd generally expect to see good revenue growth. … Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Simply Wall St -

Is Cairn Energy PLC's (LON:CNE) Balance Sheet A Threat To Its Future?

While small-cap stocks, such as Cairn Energy PLC (LON:CNE) with its market cap of UK£1.1b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Should You Be Concerned About Cairn Energy PLC's (LON:CNE) Shareholders?

Today, I will be analyzing Cairn Energy PLC’s (LON:CNE) recent ownership structure, an important but not-so-popular subject among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … Therefore, it is beneficial for us to examine CNE's ownership structure in more detail.

Simply Wall St -

Will Cairn Energy PLC's (LON:CNE) Earnings Grow In The Years Ahead?

Cairn Energy PLC's (LON:CNE) latest earnings update in December 2017 … finally turned profitable

Simply Wall St -

Is Cairn Energy PLC (LON:CNE) Undervalued?

Cairn Energy PLC (LSE:CNE), an energy company based in United Kingdom, saw a significant share price rise of over 20% in the past couple of months on the LSE. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … If you are no longer interested in Cairn Energy, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

Simply Wall St -

What’s Installed For Cairn Energy PLC (LON:CNE)?

Below, I will examine the sector growth prospects, and also determine whether Cairn Energy is a laggard or leader relative to its energy sector peers. … As an industry laggard, Cairn Energy may be a cheaper stock relative to its peers. … Although the market is expecting lower growth for the company relative to its peers, Cairn Energy is also trading at a discount, meaning that there could be some value from a potential mispricing.

Simply Wall St -

Is Cairn Energy PLC's (LON:CNE) Balance Sheet Strong Enough To Weather A Storm?

How does CNE’s operating cash flow stack up against its debt? … Additionally, CNE has generated US$28.80M in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 14.44%, signalling that CNE’s debt is not appropriately covered by operating cash. … CNE’s level of debt is low relative to its total equity, at 8.00%.

Simply Wall St -

Company Info

Description

Cairn Energy PLC operates as an oil and gas exploration, development, and production company. The company holds a portfolio of exploration, development, and production assets in the United Kingdom; Norway; and the Atlantic Margin, including Senegal, Mexico, Suriname, Côte d'Ivoire, Mauritania, and the Republic of Ireland. Cairn Energy PLC was incorporated in 2002 and is headquartered in Edinburgh, the United Kingdom.

Details
Name: Cairn Energy PLC
CNE
Exchange: LSE
Founded: 2002
£981,170,436
580,574,223
Website: http://www.cairnenergy.com
Address: Cairn Energy PLC
50 Lothian Road,
Edinburgh,
EH3 9BY,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE CNE Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK CRNZ.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB FKGC Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE CNEL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK CRNC.Y ADR NEW Pink Sheets LLC US USD 17. Oct 2008
Number of employees
Current staff
Staff numbers
188
Cairn Energy employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/18 21:40
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/03/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.