21st Oct 2014 12:48
NEW DELHI (Alliance News) - Cairn India Ltd, an oil exploration and production company and a subsidiary of Vedanta Resources PLC , reported a fall in its net profit, both on consolidated and stand-alone basis, for the second-quarter on lower income.
The Mumbai-based company posted a second-quarter consolidated net profit of Rs.2,277.88 crore or Rs.12.10 per share, lower by 33% than Rs.3,385.08 crore or Rs.17.68 per share in the corresponding quarter last year.
Quarterly Income from operations fell by 14% to Rs.3,982.05 Crore from Rs.4,649.91 crore in the prior-year quarter, on account of lower volumes due to planned maintenance shutdown, realizations impacted by the softer global crude prices and higher profit petroleum tranche in Rajasthan. Other income for the quarter was Rs.586.28 crore, compared with Rs.540.06 crore in the corresponding quarter last year.
For the six months, its consolidated net profit stood at Rs.3,370.78 crore, compared with Rs.6,512.31 crore in the corresponding period last year, a decline of 48%. Net income and other income rose by five percent to Rs.9,568.43 crore from Rs.10,040.34 crore for the six months ended September 30, 2013.
During the six-month period, average daily gross production was 215,301 barrels of oil equivalent per day (boepd), down by three percent from 212,873 boepd a year ago.
Average oil price realization during Apr-Sept. period was USD95.3/bbl, while average gas price realization was USD6.5 per mscf. Average price realization per barrel of oil equivalent (boe) during the six months stood at USD94.3.
Cairn India posted a second-quarter stand-alone net profit of Rs.1,165.01 crore or Rs.6.19 per share, compared with Rs.2,235.88 crore or Rs.11.68 per share in the second-quarter of last year, reflecting a 48% drop.
Income from operations for the quarter amounted to Rs.2,119.43 crore, lower by 14% than Rs.2,451.85 crore last year, while other income stood at Rs.286.39 crore, compared with Rs.779.16 crore in the year-ago quarter.
For the six-month period, it posted a consolidated net profit of Rs.1,808.82 crore,down by 57% from Rs.4,225 crore a year-ago. Income from operations for the half-year ended September 2014 amounted to Rs.4,494.84 crore, lower by two percent than Rs.4,585 crore in H1FY14. Other income for the April-September 2014 period totaled Rs.675.80 crore, compared with Rs.1,545.56 crore in the corresponding period last year.
Under the ongoing USD3 billion net capex program, 40% of which was earmarked for fiscal 2015, the company has invested USD258 million net in the quarter, it said.
Its board has approved the appointment of Mayank Ashar, as the Managing Director & Chief Executive Officer of the company effective November 17 2014.
Cairn India CFO and Interim CEO Sudhir Mathur said, "In light of the renewed optimism under the new government, we view the recent regulatory announcements as a welcome step for the Oil & Gas industry. In this time of lower crude prices, our strong balance sheet and top decile low cost profile distinctly positions us amongst global peers."
He added, "Considering that each of our development project is on track, we are confident of achieving our targeted volume growth of 7 to 10% over the next 3 years. The continued success of our exploration and appraisal campaign will help achieve targeted 150% reserve replacement ratio in the same period."
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