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Cairn Energy is trading at £1.81, down over 7% since the company reported a loss of $555 million for 2013 in March; the loss was much larger than expected.
The Edinburgh-based firm blamed the loss on unsuccessful drilling. The company also stopped its $300 million share buyback scheme which compounded the initial drop in its price.
Last month the company’s Indian business, Cairn India, reported a 65% drop in first-quarter net income, its lowest profit in 11 quarters; and there are still questions hanging over its tax bill.
Equity analysts are overall bullish on the stock. Out of the 26 ratings 14 are buys, 11 are holds and one is a sell.
Traders will be keen to find out of if the share buyback programme will resume, and if its success rate at oil wells is improving.
If the company does not show signs of returning to profit the share price could fall to £1.60. However, if there are any signs the company is turning around, the stock could target £2.11.