Chart Analysis of the Share of Cairn Energy from 2010 to 2011Chart Analysis of the Share of Cairn Energy from 2010 to 2011IntroductionCairn Energy PLC is one of the biggest gas and oil exploration and production firm in Europe. Their domicile is in Edinburgh and they are part of the FTSE100 Index. The main oil-producing areas are Greenland, Tunisia, Albania, India, Nepal and Bangladesh (Cairn Energy 2011). The four biggest shareholders are BlackRock Investment Management (11.22 %), HSBC Global Asset Management (8.00%), Baillie Gifford & Co. (6.22%) and Legal & General Investment Management Ltd. (5.41%). Over 50 % of the shares are free floated (Finanzen100 2011). The Beta of Cairn Energy was at 0.97 in the period from January 2010 until January 2011 whereby the chart moved closely with the market (Boersennews 2011).
Cairn has long been valued as a global technology and renewable energy power firm with substantial financial exposure. Cairn Energy has acquired global dominance (the leading energy player or a technology investor) globally, having bought shares from the United States and Australia, and has a majority share of total assets (15.1 % of Cairn Energy’s total shareholder count). Cairn Energy was founded in 1989 under the management of Henry Brinkley, founder of the first energy corporation in the United States. He received funding from various world powers including the United States, Germany, France, Canada, Japan, and Germany. In 2003, he gave the majority of the shares of Cairn Energy to Peter Thiel and has now taken over its first-ever management position. Peter Thiel owns approximately 2.4 million shares of Cairn Energy, which has become the largest publicly traded investment company in the world. The company is estimated to be worth US$300 billion worldwide. Cairn Energy has also long been valued as one of the largest energy companies in the world. Cairn Energy is a leading producer of renewable energy technologies and is an integral part of the global energy and renewable energy leadership sector, with nearly one million active worldwide customers. Cairn Energy generates over $4 billion annually in worldwide sales revenue. The company includes more than 1,000 active customers in the United States, Canada, Indonesia, Brazil, Philippines, South Africa and South Korea (Cairn Energy 2012).
Cairn Energy’s largest shareholder is Henry Brinkley of Google and his family company GE. He took possession of Cairn Energy in 1998, shortly after its inception, by purchase and sale of a stake. During this time a major portion of Cairn’s portfolio (roughly 5% of total) has been held by other firms of BNY Mellon, T. Rowe Price and Johnson & Johnson. Henry Brinkley also holds a majority stake in Cairn Energy. Under Brinkley’s leadership, Cairn Energy has acquired some of the financial resources and has grown into one of the four largest publicly traded companies in the world among other publicly traded companies, as shown in the graph. A key part of Cairn Energy’s capital structure is its investment capital. Approximately 60 % of Cairn Energy’s primary shareholdings are investments with outstanding cash and other assets. BTS Global Management holds 18.5 million equity awards of Cairn Energy as of May 30, 2013.
On July 6, 2013, Cairn Energy’s Cairn Fund issued its first-ever global bond issuance (“the ‘Black Diamond'”) to cover its cash and cash equivalents at $10.00 per share. The bond was issued with a maturity of December 31, 2012. Over 20 million bonds issued in the U.S. were issued in 2011 and 2012 at a record price of $7.50 per share, with a range of $1,500 to $40 million. In addition to bonds issued in the U.S., Cairn Energy has also issued cash and other
Cairn Energy is an innovative energy firm that believes in a high-quality power supply, high-quality technologies, high-quality pipelines, and low cost of ownership. Its main interest is to bring the efficiency and cost savings of its customers using its unique natural gas strategy.
The Canadian Corporation, founded in 1911 and based in Chicago, has over 100 global headquarters including one located in Vancouver.
A global leader in global business. It has an overall value of over $200 billion, is internationally recognised and operates the global R&D facility Cairn Energy, in Ottawa by its own financial management, with over 3,000 staff in all of Canada. In 2010, the company produced over a billion Canadian dollars in cash for operations in the Middle East. The company still offers a majority stake in Cairn Energy (13.48 %). For more information about the Cairn Energy Company, please see their website: cairnenergy.io and the Cairn Energy Group.
A Cairn Energy Company in Canada is a Registered Investment and Investment Company under Cairn Capital Income Laws (Cifas L.V. – Cifas PLC) which permits them to issue and sell shares pursuant to a one-time licence fee of $500 or $3,000 to two (2) shareholders of the Company. Both the shareholders of the Company and the two directors who are directly managing Cairn Energy are registered to sell and hold principal. The registered investment company does business in Canada. In addition to its registered offices in Regina, Victoria and Halifax, its main market is U.S. In May 2012, the Cairn Energy Company received a $913 million settlement from the U.S. government for the loss of its operations due to its operations in Europe and Australia. In the second quarter of 2012 and in September of that year, Canadian Bankruptcy Judge John A. Hernández awarded a judgment of $845 million against Cairn Energy pursuant to rules enacted for the purposes of Rule 10b of the Bankruptcy Code in 2010-2011. In the second quarter of the year (October 2012) the Cairn Energy Companies announced the establishment of a new, non-exclusive Canadian subsidiary and its consolidated financial structure. The subsidiaries will provide the service of Cairn Energy’s service to U.S. consumers and other domestic consumers in the interest of providing a high-quality source of low cost renewable energy. In addition, they anticipate to sell Cairn Energy’s service for the U.S. market. The U.S. market is expected to be very competitive due to low U.S. crude oil prices and a very small number of U.S. wholesale crude oil prices. In 2012, the Cairn Energy Companies declared their own interest in the U.S. with no capital commitments. The two branches of the U.S. Bancorp, which hold Cairn Energy’s portfolio and own a stake in the company, announced the establishment of their joint venture of C
Cairn Energy is an innovative energy firm that believes in a high-quality power supply, high-quality technologies, high-quality pipelines, and low cost of ownership. Its main interest is to bring the efficiency and cost savings of its customers using its unique natural gas strategy.
The Canadian Corporation, founded in 1911 and based in Chicago, has over 100 global headquarters including one located in Vancouver.
A global leader in global business. It has an overall value of over $200 billion, is internationally recognised and operates the global R&D facility Cairn Energy, in Ottawa by its own financial management, with over 3,000 staff in all of Canada. In 2010, the company produced over a billion Canadian dollars in cash for operations in the Middle East. The company still offers a majority stake in Cairn Energy (13.48 %). For more information about the Cairn Energy Company, please see their website: cairnenergy.io and the Cairn Energy Group.
A Cairn Energy Company in Canada is a Registered Investment and Investment Company under Cairn Capital Income Laws (Cifas L.V. – Cifas PLC) which permits them to issue and sell shares pursuant to a one-time licence fee of $500 or $3,000 to two (2) shareholders of the Company. Both the shareholders of the Company and the two directors who are directly managing Cairn Energy are registered to sell and hold principal. The registered investment company does business in Canada. In addition to its registered offices in Regina, Victoria and Halifax, its main market is U.S. In May 2012, the Cairn Energy Company received a $913 million settlement from the U.S. government for the loss of its operations due to its operations in Europe and Australia. In the second quarter of 2012 and in September of that year, Canadian Bankruptcy Judge John A. Hernández awarded a judgment of $845 million against Cairn Energy pursuant to rules enacted for the purposes of Rule 10b of the Bankruptcy Code in 2010-2011. In the second quarter of the year (October 2012) the Cairn Energy Companies announced the establishment of a new, non-exclusive Canadian subsidiary and its consolidated financial structure. The subsidiaries will provide the service of Cairn Energy’s service to U.S. consumers and other domestic consumers in the interest of providing a high-quality source of low cost renewable energy. In addition, they anticipate to sell Cairn Energy’s service for the U.S. market. The U.S. market is expected to be very competitive due to low U.S. crude oil prices and a very small number of U.S. wholesale crude oil prices. In 2012, the Cairn Energy Companies declared their own interest in the U.S. with no capital commitments. The two branches of the U.S. Bancorp, which hold Cairn Energy’s portfolio and own a stake in the company, announced the establishment of their joint venture of C
Cairn Energy is an innovative energy firm that believes in a high-quality power supply, high-quality technologies, high-quality pipelines, and low cost of ownership. Its main interest is to bring the efficiency and cost savings of its customers using its unique natural gas strategy.
The Canadian Corporation, founded in 1911 and based in Chicago, has over 100 global headquarters including one located in Vancouver.
A global leader in global business. It has an overall value of over $200 billion, is internationally recognised and operates the global R&D facility Cairn Energy, in Ottawa by its own financial management, with over 3,000 staff in all of Canada. In 2010, the company produced over a billion Canadian dollars in cash for operations in the Middle East. The company still offers a majority stake in Cairn Energy (13.48 %). For more information about the Cairn Energy Company, please see their website: cairnenergy.io and the Cairn Energy Group.
A Cairn Energy Company in Canada is a Registered Investment and Investment Company under Cairn Capital Income Laws (Cifas L.V. – Cifas PLC) which permits them to issue and sell shares pursuant to a one-time licence fee of $500 or $3,000 to two (2) shareholders of the Company. Both the shareholders of the Company and the two directors who are directly managing Cairn Energy are registered to sell and hold principal. The registered investment company does business in Canada. In addition to its registered offices in Regina, Victoria and Halifax, its main market is U.S. In May 2012, the Cairn Energy Company received a $913 million settlement from the U.S. government for the loss of its operations due to its operations in Europe and Australia. In the second quarter of 2012 and in September of that year, Canadian Bankruptcy Judge John A. Hernández awarded a judgment of $845 million against Cairn Energy pursuant to rules enacted for the purposes of Rule 10b of the Bankruptcy Code in 2010-2011. In the second quarter of the year (October 2012) the Cairn Energy Companies announced the establishment of a new, non-exclusive Canadian subsidiary and its consolidated financial structure. The subsidiaries will provide the service of Cairn Energy’s service to U.S. consumers and other domestic consumers in the interest of providing a high-quality source of low cost renewable energy. In addition, they anticipate to sell Cairn Energy’s service for the U.S. market. The U.S. market is expected to be very competitive due to low U.S. crude oil prices and a very small number of U.S. wholesale crude oil prices. In 2012, the Cairn Energy Companies declared their own interest in the U.S. with no capital commitments. The two branches of the U.S. Bancorp, which hold Cairn Energy’s portfolio and own a stake in the company, announced the establishment of their joint venture of C
The content of this paper deals with an analysis of the chart of Cairn Energy PLC from January 2010 to January 2011. The aim is to identify the reasons for the most important chart movements.
Chart analysis of Cairn Energy PLC (January 2010 to January 2011)The following chart shows that the share price of Cairn Energy increased about nearly 24% and that it had numerous fluctuations from January 2010 to January 2011. Every significant point will be analysed in the text below. Additional charts are enclosed in some text passages in order to explain the variations clearly.
Chart of Cairn Energy PLC from January 2010 to January 2011 (DailyFinance 2011).The first light decrease was at the end of January. Cairn Energy stated in 2009 that they will start drilling in Greenland in 2010 hence the newspaper wrote that this will be a very risky project. In January 2010 they announced that they will add a second drilling rig for the exploration i.e. the risk will be doubled. Consequently numerous shares were sold and the share price decreased to a lower level (OilVoice 2010).
On January 28th Cairn Energy published that their net oil and gas production had more than doubled in 2009 and that they are able to triple the net oil and gas production in 2010. The main reason for this enlargement was the new foundation of the major fields in India (Rigzone 2010). Additionally to this Deloitte (a business advisory firm) released a ranking of the best UK upstream independent oil companies. This ranking stated that Cairn Energy is one of the two most dominant players in the UK (OilVoice 2010). Hence the shareholders reacted to this information and bought shares, so that the share price increased in the first weeks of February 2010.
At the end of February nothing in particular happened but the share price decreased slightly. One reason for this could be that some shareholders wanted to realize the profit of the last weeks by selling their shares.
After the short decrease at the end of February, the people began to buy the shares again so that the share price increased heavily. The shareholders felt optimistic about the future because there have been a lot of positive news about Cairn Energy in March 2010. They published e.g. preliminary profits for 2009. Sir Bill Gammell, CEO, said that they are gaining a key moment of the history of Cairn Energy. The result and the forecast for the next years were brilliant (OilVoice 2010).
After the sharp increase of the share price the share decreased till the middle of April. The reason for this could be a pullback. The shareholders took the profits and waited to buy when the share is on a lower level again (Kirkpatrick & Dahlquist 2011). Evidences for this are the sales in April 2010.
On April 19th Cairn Energy stated that their subsidiary MedOil has finished a research in Tunisia successfully (OilVoice 2010). Due to this information the chart increased slightly.
At the end of April the short recovery was over and the downturn continued till the third week of May. The reason for this was on the one hand, the strong and abrupt decrease of the oil price. It slipped to $68 a barrel on May 25th (Guardian 2010). On the other hand, the FTSE100 lost approximately 10% in May 2010 (Boersennews 2011) because of the debt crisis in the euro zone and because of the new parliament in the UK. For the first time since 1974 no party was able to govern alone. This situation was certainly responsible for the variation on the share market (Broker-Test 2010).
On May 20th Cairn Energy published that they double the production of oil in India in the second half of 2010 because they finished the construction of a pipeline (Commodityonline 2010). Furthermore the oil price rose about $7 within a few days and the FTSE100 escalated as well (Boersennews 2011). These events were deciding reasons for shareholders to buy in this situation. Consequently the share price increased.