Cairn Energy
Market Cap
UK£629.3m
Last Updated
2020/04/10 04:13 UTC
Data Sources
Company Financials +
Executive Summary
Cairn Energy PLC operates as an independent oil and gas exploration, development, and production company.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -27.4% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet and fair value.
Similar Companies
Share Price & News
How has Cairn Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CNE's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
17.0%
CNE
6.6%
GB Oil and Gas
8.6%
GB Market
1 Year Return
-35.5%
CNE
-34.7%
GB Oil and Gas
-19.4%
GB Market
Return vs Industry: CNE matched the UK Oil and Gas industry which returned -34.7% over the past year.
Return vs Market: CNE underperformed the UK Market which returned -19.4% over the past year.
Shareholder returns
| CNE | Industry | Market | |
|---|---|---|---|
| 7 Day | 17.0% | 6.6% | 8.6% |
| 30 Day | 44.5% | 8.4% | -3.5% |
| 90 Day | -45.9% | -34.0% | -23.0% |
| 1 Year | -35.5%-35.5% | -31.3%-34.7% | -15.5%-19.4% |
| 3 Year | -48.2%-48.2% | -8.5%-20.0% | -8.8%-19.9% |
| 5 Year | -39.5%-39.5% | -2.3%-21.9% | 4.2%-19.0% |
Price Volatility Vs. Market
How volatile is Cairn Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
The Cairn Energy (LON:CNE) Share Price Is Down 20% So Some Shareholders Are Getting Worried3 months ago | Simply Wall St
What You Must Know About Cairn Energy PLC's (LON:CNE) Beta Value4 months ago | Simply Wall St
Here's Why Cairn Energy (LON:CNE) Can Afford Some DebtValuation
Is Cairn Energy undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CNE (£1.08) is trading below our estimate of fair value (£6.35)
Significantly Below Fair Value: CNE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CNE is poor value based on its PE Ratio (6.6x) compared to the Oil and Gas industry average (3.7x).
PE vs Market: CNE is good value based on its PE Ratio (6.6x) compared to the UK market (13.6x).
Price to Earnings Growth Ratio
PEG Ratio: CNE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CNE is overvalued based on its PB Ratio (0.5x) compared to the GB Oil and Gas industry average (0.5x).
Next Steps
Future Growth
How is Cairn Energy forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
-27.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CNE's earnings are forecast to decline over the next 3 years (-27.4% per year).
Earnings vs Market: CNE's earnings are forecast to decline over the next 3 years (-27.4% per year).
High Growth Earnings: CNE's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CNE's revenue (2.8% per year) is forecast to grow faster than the UK market (2.5% per year).
High Growth Revenue: CNE's revenue (2.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CNE is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has Cairn Energy performed over the past 5 years?
-0.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CNE has a large one-off loss of $80.8M impacting its December 31 2019 financial results.
Growing Profit Margin: CNE became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CNE has become profitable over the past 5 years, growing earnings by -0.6% per year.
Accelerating Growth: CNE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: CNE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (38.2%).
Return on Equity
High ROE: CNE's Return on Equity (8.2%) is considered low.
Next Steps
Financial Health
How is Cairn Energy's financial position?
Financial Position Analysis
Short Term Liabilities: CNE's short term assets ($424.2M) exceed its short term liabilities ($233.8M).
Long Term Liabilities: CNE's short term assets ($424.2M) exceed its long term liabilities ($399.7M).
Debt to Equity History and Analysis
Debt Level: CNE is debt free.
Reducing Debt: CNE had no debt 5 years ago.
Debt Coverage: CNE has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: CNE has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Cairn Energy's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CNE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate CNE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CNE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CNE's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CNE's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.8yrs
Average management tenure
CEO
Simon Thomson (54yo)
8.75s
Tenure
US$2,204,001
Compensation
Mr. Simon John Thomson has been the Chief Executive Officer of Cairn Energy Plc (Holding Company of Agora Oil and Gas AS) since July 1, 2011. Mr. Thomson serves as Chief Executive Officer of Cairn Energy p ...
CEO Compensation Analysis
Compensation vs Market: Simon's total compensation ($USD2.20M) is above average for companies of similar size in the UK market ($USD1.23M).
Compensation vs Earnings: Simon's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 8.75yrs | US$2.20m | 0.23% $1.5m | |
| CFO & Executive Director | 5.92yrs | US$1.43m | 0.095% $594.7k | |
| Chief Operating Officer | 7.25yrs | no data | 0.11% $689.3k | |
| Head of Group Corporate Affairs | no data | no data | 0.019% $121.6k | |
| Company Secretary | 21.5yrs | no data | no data | |
| Director of Exploration | 13yrs | no data | 0.0081% $51.1k |
8.8yrs
Average Tenure
Experienced Management: CNE's management team is seasoned and experienced (8.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 8.75yrs | US$2.20m | 0.23% $1.5m | |
| CFO & Executive Director | 5.92yrs | US$1.43m | 0.095% $594.7k | |
| Independent Non-Executive Director | 4.92yrs | US$81.78k | no data | |
| Independent Non Executive Director | 0.75yr | no data | no data | |
| Independent Non-Executive Chairman | 5.92yrs | US$177.00k | no data | |
| Non-Executive Director | 16.92yrs | US$75.50k | 0.012% $77.8k | |
| Independent Non-Executive Director | 3.25yrs | US$81.78k | no data | |
| Independent Non-Executive Director | 0.75yr | no data | no data | |
| Independent Non-Executive Director | 4.58yrs | US$75.50k | 0.0019% $11.8k |
4.9yrs
Average Tenure
57yo
Average Age
Experienced Board: CNE's board of directors are considered experienced (4.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CNE insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Cairn Energy PLC's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Cairn Energy PLC
- Ticker: CNE
- Exchange: LSE
- Founded: 2002
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: UK£629.312m
- Shares outstanding: 582.70m
- Website: https://www.cairnenergy.com
Number of Employees
Location
- Cairn Energy PLC
- 50 Lothian Road
- Edinburgh
- EH3 9BY
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CRNZ.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| CNE | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| FKGC | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| CNEL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| CRNC.Y | OTCPK (Pink Sheets LLC) | ADR NEW | US | USD | Oct 2008 |
Biography
Cairn Energy PLC operates as an independent oil and gas exploration, development, and production company. It holds a portfolio of exploration, development, and production assets in the United Kingdom, Israel, Mauritania, Senegal, Cote d’Ivoire, Mexico, and Suriname. The company was incorporated in 2002 and is headquartered in Edinburgh, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/10 04:13 |
| End of Day Share Price | 2020/04/09 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.