Cairn India has reported a net profit of ₹604 crore for the third quarter of financial year 2017.
This was 1,376 per cent higher than the ₹41-crore net profit achieved in same quarter of last fiscal.
The better numbers are because of 31 per cent increase in the average price realisation from oil and gas which stood at $46/bbl, considerably higher than the $35.2/bbl average price realisation in the corresponding quarter last year. In a press statement the company’s acting CEO, Sudhir Mathur said, “We have made use of the challenging oil price environment to achieve competitive returns even at Brent $40 per barrel for planned projects… The alignment between OPEC members to address the global supply glut would further enhance our project economics as we look to aggressively scale up investments.”
Mathur also said that Cairn is in active discussions with international oil field services companies to partner for the end to end outsourcing of certain projects.
The company reported that it has a strong free cash flow of ₹1,469 crore in a subdued oil price environment; solid Cash and Cash Equivalents position of the company stood at ₹25,975 crore.
The company also reported that the proposed merger of Vedanta Ltd and Cairn India was approved by all sets of shareholders in September 2016 and expects the transaction to complete by March 2017.