Cairn makes $1bn loss but keeps faith in Greenland
Oil firm Cairn Energy racked up a 1.19bn dollar loss in 2011 but said it was still optimistic about striking it big in Greenland.
Oil firm Cairn Energy racked up a 1.19bn dollar loss in 2011 but said it was still optimistic about striking it big in Greenland.
The loss on continuing operations was almost all down to unsuccessful exploration costs during the year of $942m.
Cairn drilled five exploration wells offshore Greenland in 2010 and five in 2011 but has yet to meet with success.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, the firm's failure to turn its efforts into black gold does not seem to have phased its Chief Executive, Simon Thomson, too much.
"Commercial quantities of hydrocarbons have yet to be discovered, but the first phase of our exploration programme in Greenland has demonstrated that all of the geological ingredients necessary for success are present," he said.
"We remain encouraged by the prospects and opportunities presented by exploration offshore Greenland."
The firm said its main exploration focus in 2012 will switch to the Pitu Licence in the Baffin Bay area west of Greenland over which 3D seismic and geochemical seabed sampling surveys were acquired in the summer of 2011.
In January the Edinburgh-based explorer announced it would partner with Statoil ASA to help exploit the Pitu block, farming down 30.6% of its interest in the area.
At 31 December 2011, the group said it had a cash pile of around $4.7bn of which $3.5bn was returned to shareholders in February.
The firm said the remaining $1.2bn would be retained to fund future growth opportunities.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
5 alternatives to Reeves’ inheritance tax raid on rural Britain as families face ‘splitting up or selling’ farms
Inheritance tax limits are now so low they attack small working family farms rather than just going after tax loopholes, one Cotswolds farmer has said
-
High earners at risk of £65k retirement shock
High earners could face some of the biggest pension shortfalls when they retire, as the cost of maintaining an expensive lifestyle could erode their retirement savings