• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, Oct. 29

Cairn India Ltd and its subsidiaries (consolidated) clocked a 12-fold increase in net profit for the third quarter ended September 30. The net profit stood at Rs 293.32 crore for the quarter (Rs 23.24 crore in same quarter last fiscal).

Speaking to Business Line on what has driven the enhanced financial performance of the company, Mr Rahul Dhir, CEO, Cairn India, said, “There were three main factors including higher oil price realisation, weakening of rupee, and revenues from other income earned by Cairn.”

Cairn India’s other income for the quarter under review was Rs 205.54 crore (Rs 34.30 crore), which included income from investments and gains from foreign exchange fluctuations.

The consolidated results include the company’s standalone performance. The standalone profit of Cairn India stood at Rs 81.44 crore (net loss of Rs 8.39 crore). The average oil price realisation in the quarter was $116.3 a barrel ($77.2 a barrel). The gas price realisation in the quarter was at par with the corresponding quarter last year ($ 4.1 a million standard cubic feet).

The company’s shares moved up by 7.44 per cent to close at Rs 116.55 at BSE on Wednesday. Cairn follows a January-December accounting period. Its consolidated revenue stood at Rs 320.6 crore (Rs 265.81 crore).

Cairn India is currently focused on exploration and production activities and has a working interest in 14 blocks, two of which are producing hydrocarbons.

It holds assets in western and eastern parts of the country and in Sri Lanka. Output from the producing assets in the third quarter was the equivalent of 65,566 barrels of oil a day (75,280 barrels a day).

“Cairn India continues to focus efforts on driving forward the Rajasthan upstream and midstream developments and remains on track with adequate financial liquidity to deliver first oil from Mangala in second half of 2009,” Mr Dhir said.

The company plans to invest $1.8 billion over two years for the development of its Rajasthan oilfields and the supporting infrastructure. The company is laying a heated-pipeline from Barmer in Rajasthan to Gujarat coast to transport the crude oil to refineries.

The revised Mangala Field Development Plan (FDP) has been submitted to the Government with a 30 per cent increase in reserves and an enhanced peak output of 125,000 barrels a day from the Mangala field. The company is targeting peak production of 175,000 barrels a day of oil from its Mangala, Bhagyam and Aishwariya fields in Rajasthan area.

More Stories on : Financial Performance | Petroleum | Cairn India Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line