Cairn Energy (CNE) served up calendar 2012 results today and as oil and gas companies go this has to be the easiest stock going to analyse - it looks a nil brainer if dull share tip. What I refer to is the clear tangible net asset backing. At 279.4p the market capitalisation is £1.693 billion but have a look at the asset backing.
The 2012 numbers are pretty irrelevant. The highlight of the year was a return of $3.5 billion to shareholders following Cairn’s sell down of its stake in Cairn India, which is listed in India. For what it is worth the profit after tax was $73 million. This is all a far cry from my days as a graduate trainee oil analyst in the early nineties when the company’s house broker, for whom I then worked, put out a note on Cairn at 7p headlined “not bust yet.”
on TradingResearchPoint | CommentsFiled under: