Cairn India reported 11% fall in net profit to Rs 2186.23 crore for the quarter ended March 2012 compared to corresponding previous year period while its topline was flat at Rs 3651.34 crore. Cairn India results were impacted as royalty paid by ONGC with respect to Rajasthan Block has been treated as cost recoverable resulting in a reduction in revenues and profit after tax.
Cairn Energy Plc. along with its subsidiaries (Cairn Plc. group), which is presently holding 415,562,964 shares (21.79%) of the company, ceased to be its promoter w.e.f. 8 December 2011. Vedanta Resources Plc. along with its subsidiaries (Vedanta group) became the promoter of the company from the said date. Consequently, royalty paid by Oil and Natural Gas corporation with respect to the RJ-ON-90/1 block has been treated as cost recoverable, as it was one of the pre-conditions imposed by the Government of India for approving the transaction of sale of shares by Cairn Plc. group to Vedanta group resulting in reduction in revenues and profit after tax of the Cairn India Group. The reduction on this account for the period upto 31 March 2011 has been disclosed as an exceptional item in the current year
Average daily gross operated production stood at 180293 barrels of oil equivalent per day (boepd) in Q4FY'12 up by 12% on a year on year basis (working Interest production at 107292 boepd up by 13%)
Average oil price realisation stood at USD 109.3 per barrel up by 16% compared to corresponding previous year period. Average gas price realisation stood at USD 4.4 per mscf down by 2.2% compared to corresponding previous year period. Average price realisation stood at USD 106.7 per boe up by 16% compared to corresponding previous year period
OPM fell by 900 bps to 73.9% mainly due sharp 500 bps increase in foreign exchange fluctuation loss to 6%, 300 bps increase in cess payments to 11% and 100 bps increase in share of expenses in producing oil and gas blocks to 5%. Employee's expenses fell to Rs 16.31 crore from Rs 31.93 crore. Unsuccessful exploration costs and other expenses both remained flat at 2%.
Other income rose 141% to Rs 92.27 crore. Interest cost fell 36% to Rs 30.54 crore. DDA (Depreciation, Depletion and Amortization) Cost fell 14% to Rs 401.34 crore. PBT as a result fell 8% to Rs 2359.76 crore. The final bottomline of the company was Rs 2186.23 crore up by 11%.
Commenting on the performance Rahul Dhir, Managing Director and Chief Executive Officer, Cairn India said: The ONGC-Cairn Joint Venture has reached a major milestone of achieving 175,000 barrels of oil per day production from Rajasthan today. Positive results of the EOR pilot, re-evaluation of the exploration potential in Rajasthan along with the discovered resource support a basin production potential of 300,000 bopd. We continue to add value and to contribute to our nation's energy security. Last year, we have reduced oil imports by US$ 6 billion and have contributed US$ 2.4 billion to the national exchequer.
Gross cash available as on 31 March 2012 was Rs 9143.6 crore. The nonconvertible debentures (NCD) outstanding as on 31 March 2012 were Rs 1250 crore.
The gross cumulative Rajasthan development capital expenditure spends, as on 31 March 2012 was US$ 3,433 million, of which US$ 111 million was spent during the quarter and US$ 438 million during FY'12.
For year ended March 2012 Cairn India consolidated revenue of the company rose 15% to Rs 11860.65 crore compared corresponding previous year. OPM of the company decreased 230 bps to 78% leading a 12% increase in operating profit to Rs 9254.51 crore. Other income jumped 628% to Rs 938.01 crore due to foreign exchange gain of Rs 618.61 crore during the year. Interest cost fell 25% to Rs 225.80 crore. DDA (Depreciation, Depletion and Amortization) Cost rose 21% to Rs 1440.30 crore. PBT before EO as a result rose 24% to Rs 8256.32 crore. The company had an EO expenditure of Rs 102.85 crore related to royalty payments. PBT after EO rose 22% to Rs 8423.47 crore. The final bottomline of the company was Rs 7937.74 crore up by 25%.
The scrip is trading around Rs 346 on the BSE
Cairn India: Consolidated Results