Cairn cuts net loss to Rs 7.56 cr

Cairn India, the company which has discovered the largest onland oil reserve in the country in Rajasthan, has recorded a net loss of Rs 7.56 crore in the second quarter ended June 30 against a loss of Rs 8.54 crore in the first quarter ended March 30.

The company, which got listed in the last quarter on the 2006 calendar year, recorded a 27.51 per cent lower sales at Rs 361 lakh compared with Rs 498 lakh in the previous quarter.

The consolidated net loss of Cairn India and its subsidiaries, which operate the Ravva oil and gas field in the Krishna-Godavari basin besides other overseas ventures, was Rs 71.4 crore compared with profit of Rs 37.6 crore in the last quarter. The consolidated revenue was Rs 243.3 crore.

The average realisation from a barrel of crude oil higher at $71.11 per barrel compared with $ 61.04 per barrel in the last quarter.

The gas price realisation was $4.35 per million cubic metre, up from $4.07 per million cubic feet.

The profit before tax and foreign exchange loss was Rs 109.3 crore, a 32 per cent increase over Rs 83.1 crore in the last quarter.

The company lost Rs 140.5 crore due to the strong rupee value against the dollar. "This arises on account of the deposits held in dollars by the foreign subsidiaries, which are intended to be used for capital imports. In this current phase of project implementation, we would ordinarily hold dollars to match our projected dollar outflows for capital expenditure," the company said in a statement.

The company's share price on the Bombay Stock on Monday exchange fell 1.32 per cent to Rs 145.30.