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Cairn India Q3 net falls 14 percent

Posted on Jan 23 2014 | IANS

New Delhi, Jan 23 : Energy major Cairn India Thursday posted 13.8 percent fall in net profits caused by forex losses and increased expenses in the third quarter, ending December, over the same quarter of the last fiscal.

The company, a subsidiary of Vedanta Resources, reported that its profit after tax (PAT) dropped to Rs.2,884.04 crore in the quarter from Rs.3,344.89 crore in the same quarter of the last fiscal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew marginally to Rs.3,592 crore.

Cairn India's total income rose 7.5 percent quarter-on-quarter to a record level of Rs.5,011.28 crore in the quarter in question, from Rs.4695.17 crore in the corresponding quarter ending December 2012, driven by increased volumes.

Average gross production for the quarter was at 2,24,493 barrels of oil equivalent per day (boepd), up five percent compared to the same quarter a year ago.

The company said increased production from its Aishwariya field and the enhanced pace of well construction led to higher average gross production from the Rajasthan block, growing six percent quarter-on-quarter to 186,000 boepd. The block produced 17.1 million barrels of oil in the quarter.

"The block remains on track to deliver the expected FY-14 exit production rate of over 200,000 boepd," the company said in a filing to the BSE.

"The renewed exploration and appraisal programme during 2013 resulted in three discoveries in Rajasthan and Declaration of Commerciality of Nagayalanka discovery in KG-Onshore block," said whole-time director Elango P.

Cairn suffered consolidated forex losses of Rs.129 crore during the quarter, while total expenses surged 17 percent to Rs.2,002.92 crore.

During the quarter, Cairn India announced the buyback of its equity shares from existing shareholders from the open market at a price not exceeding Rs.335 per share. The company will spend up to Rs.5,725 crore for the buyback, that started Thursday.

Company shares closed Thursday at Rs.324.65 a share, 2.45 points or 0.76 percent higher than its previous close on the Bombay Stock Exchange (BSE).

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