23rd Apr 2015 14:12
LONDON (Alliance News) - Vedanta Resources PLC subsidiary Cairn India Ltd Thursday said it swung to a fourth-quarter loss after tax, as revenue dropped due to lower crude oil prices and volumes.
In a statement, Cairn India said it made a USD39 million loss after tax in the quarter ended March 31, compared with a USD491 million profit after tax in the corresponding quarter the prior year.
Revenue, after profit sharing with India's government and royalty expenses in the Rajasthan block, was USD430 million, compared with USD817 million in the corresponding quarter of the prior year. Cairn India said that operating expenses increased due to higher well maintenance costs, while exploration cost write offs were also higher. The subsidiary said those costs were marginally offset by lower costs related to administration and employee benefits.
Results were also hurt by a foreign exchange loss due to the appreciation of the Indian rupee, while it booked an impairment loss in Sri Lanka.
"Despite record low oil prices and substantial cut in capex, we will at a minimum maintain Rajasthan production at FY15 levels. We will be investing a net capex of USD500 million; 45% in Core MBA fields, 40% in Growth projects of Barmer Hill, Satellite Fields & Gas and 15% in exploration. We retain the flexibility to invest balance USD1.4 billion as oil prices improve and costs bottom out. We aim to have healthy cash flows post capex to retain the ability to pay dividends subject to board," Cairn India said in its outlook statement for the current financial year.
Vedanta shares were up 2.1% at 607.19 pence on Thursday afternoon in London.
By Samuel Agini; [email protected]; @samuelagini
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