The sharp fall in global crude oil prices combined with lower production from its Rajasthan fields have adversely impacted Cairn India’s third quarter bottomline performance, which has declined 99.3 per cent.
Cairn India’s net profit for the quarter ended December 31, 2015, stood at ₹9 crore against ₹ 1,350 crore in the same quarter last year.
The Vedanta Group company’s net revenue also fell 42 per cent to ₹2,039 crore against ₹3,504 crore in the same quarter last year.
“We are continuously engaging with the government to take actions to support the oil and gas industry in such a low oil price environment,” Mayank Ashar, Managing Director and Chief Executive Officer, Cairn India, said in a statement.
“We continue to pursue pre-development activities for our growth projects to make them future ready for rapid development when oil prices rebound,” he added.
Cairn India’s average price realisation was $35.2 per barrel of oil equivalent during the quarter, which was 48 per cent lower than $68.1 per barrel of oil equivalent in the same quarter last year.
Discount to Brent crude oil price for Rajasthan crude increased to $9.2 per barrel. Average realisation for the Rajasthan crude came in at $34.5 per barrel during the quarter. “Net revenue decreased mainly due to sharp decline of 13 per cent in crude prices and increase in discount to Brent for Rajasthan crude,” an official statement said.
Cairn’s average daily gross production from the Rajasthan block fell five per cent to 170,444 barrels of oil equivalent per day from 180,010 barrels of oil equivalent per day in the same quarter last year. The company’s maximum revenues come from Rajasthan.
Across all its fields Cairn’s gross production was 18.6 million barrels of oil equivalent during the third quarter with daily production of 202,668 barrels of oil equivalent a day. Daily production rate was seven per cent lower than last year.
The company said water flood operating costs at Rajathan remain low at $5.1 per barrel of oil equivalent.
Giving its outlook, Cairn India said that the company maintains its view to step up investment as oil prices improves and costs bottom out. “We continue to create options and be ready for their rapid development following an upswing in the oil prices,” the company stated.
On Friday, Cairn India’s shares closed 2.64 per cent higher on the BSE at ₹112.90 per share.