Millennium Post

Cairn India profit soars 56%, revenues rise 48%

Private energy giant Cairn India Ltd  (CIL) has achieved record revenues of Rs 17,524 crore ($3,223 million), a 48 per cent increase over the previous year, and profit after tax (excluding forex and impact of the reorganisation) of Rs 11,606 crore ($2,135 million), a 56 per cent increase over the previous year. Earnings before interest tax depreciation and amortisation (EBITDA) increased to Rs 130,33 crore ($2,397 million), a 41 per cent rise over the previous year.

The Cairn India Board has recommended a final dividend of Rs 6.5 per share, resulting in a total dividend of Rs 11.5 per share for the year, culminating in a total payout of 21.2 per cent (including dividend distribution tax) of profit after tax for the year. The company’s gross operated production was 205,323 barrels of oil equivalent per day (boepd), a 19 per cent increase over the previous year.

While the Aishwariya field commenced oil production, the fifth oil field in the Rajasthan block too came online. The oil and gas behemoth re-commenced exploration drilling in the Rajasthan block, making its 26th discovery in April 2013.

The company also started gas sales from the Rajasthan block and submitted a formal application for an extension of the licence term as provided in the PSC to the Ministry of Petroleum and Natural Gas.

Cairn India plans to drill in excess of 450 wells in the Rajasthan block over a three year period, including 100 Exploration and Appraisal (E&A) wells and the balance as development wells to sustain and enhance production volumes. The 100 E&A wells target a gross recoverable risked prospective resource of 530 mmboe.

Drilling in the first year is expected to test around half of the prospective resource volumes. The infill drilling campaign in CB/OS-2 was completed successfully. resulting in doubling of the production potential. Cairn India also farmed-in to the PetroSA ‘Block 1’ in the Orange Basin, offshore South Africa, with 60 per cent interest and operatorship.

‘In financial year 2012-13, we have achieved spectacular results, delivering best in class production growth and operating costs’, said Cairn India Whole-Time Director and Interim CEO Elango P.

‘The operating environment has also substantially improved, with key approvals coming in at a faster pace that enabled us to ramp up Mangala production, bring the Aishwariya field online, commence gas sales and, most importantly, re-commence exploration in Rajasthan,’ he added.

‘We have initiated the largest ever exploration and appraisal programme in our history to unlock further potential in Rajasthan as well as focus on our next stage of growth beyond Rajasthan. Commensurate with the development and exploration activity across the existing portfolio, we plan for a net capital investment of $3 billion through fiscal 2015-16,’ informed  Elango.

In Sri Lanka, the company is evaluating data from both exploration phases and integrating it to fully understand the block’s future potential as it evaluates options for developing the existing discoveries in the block. In the Orange Basin in South Africa, it is following an assignment of 60 per cent operating interest in ‘Block 1’, where it has commenced exploration operations.
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