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Cairn Energy

DB:FKGC
Snowflake Description

Good value with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FKGC
DB
£641M
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Cairn Energy PLC operates as an independent oil and gas exploration, development, and production company. The last earnings update was 30 days ago. More info.


Add to Portfolio Compare Print
  • Cairn Energy has significant price volatility in the past 3 months.
FKGC Share Price and Events
7 Day Returns
36.2%
DB:FKGC
8.7%
DE Oil and Gas
4.3%
DE Market
1 Year Returns
-40%
DB:FKGC
34.4%
DE Oil and Gas
-14.2%
DE Market
FKGC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cairn Energy (FKGC) 36.2% 7.8% -52.1% -40% -53.9% -53.1%
DE Oil and Gas 8.7% -2.8% -19.4% 34.4% -14.7% 157%
DE Market 4.3% -9% -21.6% -14.2% -19.6% -25.6%
1 Year Return vs Industry and Market
  • FKGC underperformed the Oil and Gas industry which returned 34.4% over the past year.
  • FKGC underperformed the Market in Germany which returned -14.2% over the past year.
Price Volatility
FKGC
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
Here we compare the current share price of Cairn Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cairn Energy.

DB:FKGC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:FKGC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.972 (1 + (1- 19%) (35.75%))
1.17
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.17 * 6.07%)
6.71%

Discounted Cash Flow Calculation for DB:FKGC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cairn Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:FKGC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.71%)
2020 -261.01 Analyst x9 -244.59
2021 -307.43 Analyst x9 -269.98
2022 -269.58 Analyst x4 -221.85
2023 -115.53 Analyst x3 -89.09
2024 176.59 Analyst x3 127.62
2025 267.77 Est @ 51.63% 181.34
2026 364.23 Est @ 36.02% 231.15
2027 455.65 Est @ 25.1% 270.98
2028 535.17 Est @ 17.45% 298.26
2029 599.92 Est @ 12.1% 313.32
Present value of next 10 years cash flows $597.00
DB:FKGC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $599.92 × (1 + -0.39%) ÷ (6.71% – -0.39%)
$8,414.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,414.96 ÷ (1 + 6.71%)10
$4,394.83
DB:FKGC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $597.00 + $4,394.83
$4,991.83
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,991.83 / 582.70
$8.57
DB:FKGC Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:CNE)
0.81
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $8.57 x 0.81
£6.94
Non-primary Listing Adjustment Factor 1 share in DB:FKGC represents 1.01363x of LSE:CNE
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.01363x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 6.94 x 1.01363
€7.03
Value per share (EUR) From above. €7.03
Current discount Discount to share price of €1.12
= -1 x (€1.12 - €7.03) / €7.03
84.1%

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

Current Discount
Amount off the current price Cairn Energy is available for.
Intrinsic value
>50%
Share price is €1.12 vs Future cash flow value of €7.03
Current Discount Checks
For Cairn Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cairn Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Cairn Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).
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
DB:FKGC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.20
LSE:CNE Share Price ** LSE (2020-04-08) in GBP £1.1
LSE:CNE Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.234 $1.36
Europe Oil and Gas Industry PE Ratio Median Figure of 104 Publicly-Listed Oil and Gas Companies 6.5x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 17.07x

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

** Primary Listing of Cairn Energy.

DB:FKGC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 1.36 ÷ 0.20

6.63x

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

  • Cairn Energy is overvalued based on earnings compared to the Europe Oil and Gas industry average.
  • Cairn Energy is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Cairn Energy's expected growth come at a high price?
Raw Data
DB:FKGC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
-27.4%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 66 Publicly-Listed Oil and Gas Companies 0.32x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

DB:FKGC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.63x ÷ -27.4%

-0.24x

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

  • Cairn Energy earnings are not expected to grow next year, 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
DB:FKGC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $2.50
LSE:CNE Share Price * LSE (2020-04-08) in GBP £1.1
LSE:CNE Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.234 $1.36
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 1.01x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.47x
DB:FKGC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 1.36 ÷ 2.50

0.54x

* Primary Listing of Cairn Energy.

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

  • Cairn Energy is good value based on assets compared to the DE 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 4/6, 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
-27.4%
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 are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Cairn Energy's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Cairn Energy's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:FKGC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:FKGC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts -27.4%
DB:FKGC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 2.8%
Europe Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*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
DB:FKGC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 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.
DB:FKGC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 777 402 101 3
2023-12-31 487 166 -41 3
2022-12-31 384 190 -29 5
2021-12-31 395 207 -4 14
2020-12-31 424 226 1 12
2020-04-08
DB:FKGC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 533 407 119
2019-06-30 498 349 -569
2019-03-31 454 279 -852
2018-12-31 410 209 -1,122
2018-09-30 308 116 -745
2018-06-30 205 21 -354
2018-03-31 119 25 -68
2017-12-31 33 29 218
2017-09-30 22 34 116
2017-06-30 11 38 14
2017-03-31 5 9 -41

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cairn Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Cairn Energy's revenue is expected to grow by 2.8% 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
DB:FKGC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 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 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FKGC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 0.20 0.20 0.20 1.00
2023-12-31 -0.01 -0.01 -0.01 1.00
2022-12-31 -0.04 0.06 -0.11 4.00
2021-12-31 -0.01 0.06 -0.07 10.00
2020-12-31 0.04 0.22 -0.25 14.00
2020-04-08
DB:FKGC Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.20
2019-06-30 -0.98
2019-03-31 -1.47
2018-12-31 -1.93
2018-09-30 -1.28
2018-06-30 -0.61
2018-03-31 -0.12
2017-12-31 0.38
2017-09-30 0.20
2017-06-30 0.02
2017-03-31 -0.07

*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 Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe 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 0/6, 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's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Cairn Energy has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Cairn Energy has become profitable in the last year making it difficult to compare the Europe Oil and Gas industry average.
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 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FKGC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 533.40 119.20 139.30
2019-06-30 498.20 -568.50 79.70
2019-03-31 454.25 -852.00 89.15
2018-12-31 410.30 -1,122.20 53.90
2018-09-30 307.60 -744.55 111.80
2018-06-30 204.90 -353.60 125.00
2018-03-31 119.10 -67.90 109.20
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

*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.
  • Cairn Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cairn Energy used its assets more efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.
  • Cairn Energy has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
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 2/6, 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 cash and other short term assets cover its long term commitments.
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 -7.4626053200413E+15x 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 3 months ago.

DB:FKGC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,455.50 0.00 151.60
2019-06-30 1,437.40 90.40 63.70
2019-03-31 1,437.40 90.40 63.70
2018-12-31 1,390.10 101.70 73.20
2018-09-30 1,390.10 101.70 66.30
2018-06-30 1,981.00 121.20 185.80
2018-03-31 1,981.00 121.20 185.80
2017-12-31 2,494.50 29.80 86.50
2017-09-30 2,494.50 29.80 86.50
2017-06-30 2,307.50 21.70 253.70
2017-03-31 2,307.50 21.70 253.70
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
  • Cairn Energy's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Cairn Energy's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Cairn Energy has no debt, therefore coverage of interest payments is not a concern.
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 4/6, 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
DB:FKGC 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
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 8.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.6%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

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

DB:FKGC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 0.00 1.00
2023-12-31 0.00 1.00
2022-12-31 0.00 2.00
2021-12-31 0.00 7.00
2020-12-31 0.00 8.00
2020-04-08

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 Germany.
X
Income/ dividend checks
We assess Cairn Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 $2,204,001
AGE 54
TENURE AS CEO 8.8 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 serves as Chief Executive of Cairn Energy plc at Capricorn Norge AS. 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 been consistent with company performance over the past year, both up more than 20%.
  • Simon's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Cairn Energy management team in years:

8.8
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
$2M
AGE
54
TENURE
8.8 yrs

James Smith

TITLE
CFO & Executive Director
COMPENSATION
$1M
AGE
42
TENURE
5.9 yrs

Paul Mayland

TITLE
Chief Operating Officer
TENURE
7.3 yrs

David Nisbet

TITLE
Head of Group Corporate Affairs

Duncan Wood

TITLE
Company Secretary
TENURE
21.5 yrs

Eric Hathon

TITLE
Director of Exploration
TENURE
13 yrs
Board of Directors Tenure

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

4.9
Average Tenure
57
Average Age
  • The tenure for the Cairn Energy board of directors is about average.
Board of Directors

Ian Tyler

TITLE
Independent Non-Executive Chairman
COMPENSATION
$177K
AGE
59
TENURE
5.9 yrs

Simon Thomson

TITLE
CEO & Executive Director
COMPENSATION
$2M
AGE
54
TENURE
13.4 yrs

James Smith

TITLE
CFO & Executive Director
COMPENSATION
$1M
AGE
42
TENURE
5.9 yrs

Keith Lough

TITLE
Independent Non-Executive Director
COMPENSATION
$82K
AGE
60
TENURE
4.9 yrs

Nicoletta Giadrossi-Morel

TITLE
Independent Non-Executive Director
COMPENSATION
$82K
AGE
53
TENURE
3.3 yrs

Todd Hunt

TITLE
Non-Executive Director
COMPENSATION
$76K
AGE
66
TENURE
16.9 yrs

Peter Kallos

TITLE
Independent Non-Executive Director
COMPENSATION
$76K
AGE
60
TENURE
4.6 yrs

W. L. L. Alison Wood

TITLE
Independent Non Executive Director
AGE
56
TENURE
0.8 yrs

Cathy Krajicek

TITLE
Independent Non-Executive Director
AGE
57
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Cairn Energy individual 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 (€)
19. Mar 20 Buy Eric Hathon Individual 18. Mar 20 18. Mar 20 10,000 €0.76 €7,589
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

Company Info

Description

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.

Details
Name: Cairn Energy PLC
FKGC
Exchange: DB
Founded: 2002
£726,532,460
582,696,269
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
265
Cairn Energy employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 21:47
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/03/09
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


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.