OIL AND gas explorer Cairn Energy yesterday announced first-half, post-tax losses of $62m (£37m), compared to a loss of $219m in the same period a year ago.
The Edinburgh-based company said it would now need to re-assess staffing levels and cut costs.
Cairn is still trying to resolve a tax issue in India and said it would “take all necessary steps to protect shareholders’ interests”.
The group said a number of further exploration wells, “predominantly in the North Sea, will be subject to final investment decisions by partners”.
But together with its joint venture partners – Norway’s Statoil and Greenland’s national oil company Nunaoil – it put controversial Arctic drilling plans on ice earlier this year to focus on efforts elsewhere.
It said there was a need to re-organise “the group to ensure staffing levels are appropriate for the future.”
Cairn said its group cash position of $1.1bn was adequate to pay for its operations in the foreseeable future.
Cairn Energy chief executive Simon Thomson said: “The company is focused on creating value and shareholder returns from disciplined capital allocation across a balance of exploration and development assets.”
Shares in the FTSE 250 company closed down 0.05 per cent at 187.30p after falling sharply when the results were released.