Cairn India inches up along with crude oil price
Cairn India rose 0.42% to Rs 321 at 13:12 IST on BSE as US crude oil futures advanced for a 4th straight day as TransCanada Corp. said it will start part of its Keystone XL pipeline next month and data showed United States crude inventories fell.
Meanwhile, the S&P BSE Sensex was down 39.16 points or 0.19% at 20,815.76.
On BSE, 43,000 shares were traded in the counter as against average daily volume of 1.80 lakh shares in the past one quarter.
The stock was volatile. The stock rose as much as 0.7% at the day's high of Rs 321.90 so far during the day. The stock lost as much as 0.43% at the day's low of Rs 318.25 so far during the day.
The stock had outperformed the market over the past one month till 3 December 2013, declining 1.02% compared with the Sensex's 1.81% fall. The scrip had, however, underperformed the market in past one quarter, sliding 1.31% as against Sensex's 14.37% gain.
US crude oil futures for January 2014 delivery were up $1.10 a barrel at $97.14 a barrel in the electronic trading today, 4 December 2013. The contract had surged $2.22 a barrel or 2.36% to settle at $96.04 a barrel on the New York Mercantile Exchange on Tuesday, 3 December 2013, its highest closing level since 31 October 2013. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms like Cairn India.
Calgary-based TransCanada plans to start deliveries from Jan 3 to Port Arthur, Texas, via the segment of the Keystone expansion project from Cushing, a government filing showed yesterday.
Meanwhile, the US crude inventories dropped to 377.8 million barrels in the seven days ended 29 November, the first decline in 10 weeks, the industry-funded API said.
Cairn India's consolidated net profit jumped 45.8% to Rs 3385.08 crore on 4.7% growth in net sales to Rs 4649.91 crore in Q2 September 2013 over Q2 September 2012.
The company reported foreign exchange fluctuation gain of Rs 429.16 crore in Q2 September 2013, as against foreign exchange fluctuation loss of Rs 785.81 crore in Q2 September 2012.
Cairn India is primarily engaged in the business of oil and gas exploration, production and transportation. The company sells its oil to major refineries in India and its gas to both public sector units and private buyers.
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