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Cairn profit jumps 18%

New Delhi, April 23: A surge in oil production at the Rajasthan fields helped Cairn India to post an 18 per cent rise in fourth-quarter net profit.

Net profit for the January-March quarter rose to Rs 3,035 crore from Rs 2,564 crore in the year-ago period, the company said in a statement. Sales climbed 16 per cent to Rs 5,049 crore.

Oil production from the Rajasthan fields rose 12 per cent to 189,304 barrels per day in the fourth quarter. The company ended the 2013-14 fiscal with an output of 200,000 barrel of oil equivalent a day.

For the 2013-14 fiscal, net profit rose 4.3 per cent to Rs 12,432 crore from Rs 12,056 a year ago. Sales increased to Rs 18,762 crore during the fiscal from Rs 17,524 crore in 2012-13.

Cairn declared a dividend of Rs 6.50 per share for the year ended March 31, 2014.

“Our performance over the last fiscal reflects our unique position of delivering industry leading production growth, which has contributed to the reduction in imports and has also benefited stakeholders,” Cairn chief executive P. Elango said.

“We have also significantly added to our resource base by delivering a rapid exploration and appraisal drilling programme with a success ratio of 50 per cent, establishing six discoveries and adding over 1 billion barrels of oil and gas in-place,” he said.

After exploration was resumed in March 2013, Cairn has added over 1 billion barrels of oil equivalent in-place reserves to the existing 4.2 billion barrels of oil equivalent.

“Of the 17 exploration wells drilled to date, over 80 per cent have shown hydrocarbons. Till date, six discoveries have been established and the testing of the other bearing wells is underway,” the statement said.

On the outlook, the company said it was considering the potential of the Rajasthan asset and would continue to focus on key projects to enhance recovery with an overall planned net capex of $3 billion by fiscal 2016-17.

“We shall target to achieve reserve replacement ratio of 150 per cent in the next 3 years subject to PSC (production sharing contract) extension till 2030 and a 3-year production CAGR of 7-10 per cent from known discoveries with flat production in fiscal 2014-15,” it added.

For the Krishna-Godavari (KG) offshore block, Cairn said exploration had been resumed in March. For the KG onshore block, the field development plan is expected to be submitted in the current fiscal.

 
 
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