Cairn India has reported net loss of ₹10,948 crore in the fourth quarter of fiscal 2015-16, as the company took a non-cash impairment charge of ₹11,673 crore. In the same quarter last year the company had reported a net loss of ₹240.82 crore.

Despite the performance, the board of directors of Cairn India recommended a dividend of ₹3 per share.

During the quarter, Cairn India’s net revenue fell 35 per cent to ₹1,716 crore (₹2,677 crore).

“Due to the decline in crude oil prices in the international market, the Group has recorded an impairment charge on the carrying value of goodwill and some of its non-producing oil and gas assets aggregating to ₹11,389.63 crore and ₹284.17 crore respectively,” the company said in a filing to the Bombay Stock Exchange.

Typically, when crude oil prices drop, exploration and production companies revalue their assets which are reflected through an impairment charge.

Cairn’s average price realisation during the quarter was $27.8 per barrel, which was 43 per cent lower than $48.6 per barrel in the same quarter last year.

The company said in a statement that there has been a 22 per cent decrease in Brent crude oil prices which was partially made up by improvement in discount to Brent for Rajasthan crude to $6.8 per barrel from $9.2 per barrel in the third quarter of fiscal 2015-16.

“The company continues with its pre-development activities to be future ready to tap the resource base. Cairn India continues to engage with the government on extension of production sharing contract for further investment in the prolific Rajasthan block. The management will continue to pursue innovations and technology in its asset portfolios to maintain the low cost of operations,” said Mayank Ashar, Managing Director and CEO of Cairn India.

On Friday, Cairn India’s shares closed 0.6 per cent lower on the BSE at ₹151.40, but the company announced its results after the markets had closed.

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