Cairn India

Cairn consolidated revenue post profit sharing with the government of the company for Q3 FY'12 was flat at Rs 3096.72 crore as compared to Rs 3096.44 crore in Q3FY'11. The royalty estimate (net to the company) for the quarter is Rs 628.5 crore. The Rajasthan royalty is estimated at approximately 15% of the revenue. The profit petroleum in Rajasthan block provided for the quarter was Rs 572.7 crore. Both royalty payment and profit petroleum was not there in Q3FY'11. OPM of the company fell by 560 bps to 76.5% mainly due to increase in exploration costs to Rs 176.31 crore from Rs 21.58 crore in the corresponding previous year period primarily on account of the plugged and abandoned well in Sri Lanka leading to a 7% fall in operating profit to Rs 2369.24 crore.

Average daily gross operated production stood at 169,580 barrels of oil equivalent per day (boepd) in Q3FY'12 down by 3% on a year on year basis (working Interest production at 98,969 boepd down by 1%)

Average oil price realisation stood at USD 101.1 per barrel up by 33% compared to corresponding previous year period.

Average gas price realisation stood at USD 4.43 per mscf down by 1.4% compared to corresponding previous year period.

Average price realisation stood at USD 98.4 per boe up by 32% compared to corresponding previous year period

With royalty paid by ONGC with respect to the Rajasthan block being treated as cost recoverable it has resulted in reduction in revenues and profit after tax for the current quarter by Rs 628.52 crore. The impact of the same till September 30, 2011 aggregating to Rs 2514.49 crore was accounted for in the quarter ended on that date and included Rs 1355.18 crore and Rs 102.84 crore upto June 30, 2011 and March 31, 2011 respectively, which was disclosed as an exceptional item in the said quarter.

Other income of the company stood at Rs 413.82 crore inclusive of net foreign exchange gain of Rs 301.5 crore from Rs 34.16 crore in the corresponding previous year period. Interest cost fell 68% to Rs 24.01 crore. DDA (Depreciation, Depletion and Amortization) Cost rose 32% to Rs 378.72 crore. PBT as a result rose 7% to Rs 2380.33 crore. The final bottomline of the company was Rs 2261.93 crore up by 13%.

The company has made a net forex gain of Rs 301.5 crore due to depreciation of rupee against the US$.

Commenting on the performance Rahul Dhir, Managing Director and Chief Executive Officer, Cairn India said: The commencement of production from the Bhagyam field is yet another significant milestone for the Cairn-ONGC Joint Venture in Rajasthan. With the support of the Government of India and the Government of Rajasthan, the Cairn - ONGC Joint Venture is well placed to further develop the hydrocarbon-rich Barmer Basin in Rajasthan, increase of production and create value for our Nation. Our successive discoveries in Sri Lanka have established a working hydrocarbon system in the frontier Mannar Basin. This success demonstrates Cairn India's strong skill set, which we will continue to leverage for future opportunities. We have also notified the Sri Lankan Government about our intention to enter the second phase of exploration. With the new board now in place, Cairn India remains well poised for the next phase of growth.

Gross cash available as on 31 December 2011 was Rs 7710.2 crore. The nonconvertible debentures (NCD) outstanding as on 31 December 2011 were Rs 1250 crore. Repayment of Rs 100 crore of NCD was done during the quarter.

The gross cumulative Rajasthan development capital expenditure spends, as on 31 December 2011 was USD 3323 million, of which USD 100 million was spent during the quarter including USD 49 million on Bhagyam field.

For nine months ended December 2011 Cairn India consolidated revenue of the company rose 24% to Rs 8209.32 crore as compared to Rs 6623.46 crore in 9MFY'11. OPM of the company decreased 170 bps to 77.2% leading a 21% increase in operating profit to Rs 6338.09 crore. Interest cost fell 24% to Rs 191.43 crore. DDA (Depreciation, Depletion and Amortization) Cost rose 43% to Rs 1038.96 crore. PBT as a result rose 42% to Rs 6166.56 crore. The company had an EO expenditure of Rs 102.84 crore related to royalty payments. PBT after EO rose 40% to Rs 6063.72 crore. The final bottomline of the company was Rs 5751.52 crore up by 48%.

The scrip is trading around Rs 349 on the BSE

Cairn India: Consolidated Results