Cairn net more than triples to Rs 2,322 cr in Sept quarter

Cairn India Ltd today said it has more than tripled its net profit in September quarter to Rs 2,322.18 crore on the back of higher production, and will consider its maiden dividend payout on October 31.

Net profit in July-September quarter last year stood at Rs 763.03 crore, a company statement said here.

Cairn produced an average of 171,801 barrels per day (bpd) of crude oil from its prolific Rajasthan fields, up from 125,251 bpd a year ago. This increased production helped offset USD 142 million or Rs 786 crore of foreign exchange loss due to rupee appreciation.

Cairn said revenue rose 68% to Rs 4,443.1 crore.

Also, the company reported resolution of a dispute over laying of a 80-km pipeline from Salaya to Bhogat in Gujarat. Completion of this section by first half of 2013 would connect the Barmer oil fields to west coast, enabling more refineries to receive Rajasthan crude.

Cairn transports 175,000 bpd of current output from Rajasthan to refiners like Reliance Industries and Essar Oil in Gujarat through a 590-km pipeline from Barmer to Salaya.

The company said Mangala oilfield, the largest among 25 oil and gas finds the firm has made in the Rajasthan block, is producing at approved plateau of 150,000 bpd while Bhagyam, the second biggest field, is producing 25,000 bpd.

This along with output from its other fields helped in reducing India's import bill by USD 1.8 billion and contributed USD 0.8 billion to national exchequer in taxes and levies, Cairn India CEO P Elango said.

"The quarter saw consistent production from our flagship Rajasthan asset. The block continues to produce 175,000 bpd, which is more than 20% of India's domestic oil production," he said. "Work to enhance production from the block continues to remain our focus."

Cairn has received all government approvals for its corporate re-organisation. "Implementation of this will help simplify and consolidate the multi-layered structure of Cairn India comprising foreign subsidiaries," Elango said.

The company Board will meet on October 31 to consider payment of interim dividend, the statement said. The company had a net cash of Rs 12,442.7 crore as on September 30.

Elango said the company had made "good progress" with the government on its proposal to do further exploration in the Rajasthan block.

The company is now making all pre-drilling preparations so that it can start drilling the moment it gets the final nod.

Also, the company expects to begin production from Aishwariya field, the third largest in Rajastan, by end of 2012-13 fiscal. Initial production would be about 10,000 bpd.