Cairn India lost 0.99% to Rs 329.25 at 9:18 IST on BSE after consolidated net profit rose 46% to Rs 3385 crore on 5% growth in revenue to Rs 4650 crore in Q2 September 2013 over Q2 September 2012.
The Q2 result was announced after market hours on Tuesday, 22 October 2013.
Meanwhile, the S&P BSE Sensex was up 36.01 points or 0.17% at 20,900.98.
On BSE, 27,000 shares were traded in the counter as against average daily volume of 1.79 lakh shares in the past two weeks.
The stock hit a high of Rs 334 and a low of Rs 329 so far during the day.
Cairn India's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) rose 9% to Rs 3619 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.
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Cairn India's consolidated net profit rose 8% to Rs 3385 crore on 14% growth in revenue to Rs 4650 crore in Q2 September 2013 over Q1 June 2013. Cairn India attributed the top line growth during the quarter on quarter-on-quarter (QoQ) basis to better price realisation and rupee depreciation. Also rupee depreciation aided bottom line growth over sequential quarter.
Cairn India's consolidated EBITDA rose 19% to Rs 3619 crore in Q2 September 2013 over Q1 June 2013, mainly due to lower exploration cost.
Cairn India's production rose 0.4% to 213,299 barrels of oil equivalent per day (boepd) in Q2 September 2013 over Q1 June 2013.
Cairn India's average oil price realization rose to $96.7/bbl in Q2 September 2013 from $94.6/bbl in Q1 June 2013, while average gas price realization rose to $5.90 per thousand standard cubic feet (mscf) in Q2 September 2013 from $4.9/mscf in Q1 June 2013.
Commenting on the company's Q2 performance, Elango P, whole time director, Cairn India said, "We are happy to report increased gross operated production of almost 213,300 barrels of oil equivalent per day (boepd) during Q2 September 2013 and remain on track for our financial year exit production rate guidance of over 225,000 boepd across all producing assets. We are focused on enhancing the recovery efficiency from our producing fields through the use of cutting edge EOR techniques. We have also been extremely active with the drill bit as we continue to aggressively develop our world class resource base. Whilst Rajasthan remains at the heart of the Company's operations, it is encouraging to see tangible results across our broader portfolio. We remain excited on the regulatory front and are pleased to share that the government has recently announced its policy on the Integrated Development Plan. Looking ahead, we have a strong balance sheet, underpinned by significant cash flow generation and low operating costs, allowing us the flexibility to further develop the asset base. This, combined with a highly motivated and innovative team working on our world class portfolio, will enable us to maintain our industry leading production growth trajectory in the long term".
With regard to its future business outlook, Cairn India said that the company remains on track for its FY 2014 exit gross production target of over 225,000 boepd including over 200,000 boepd from the Rajasthan block. Several high impact exploration wells are planned to be drilled over the next two quarters in the Rajasthan block to help in realizing the objective of drilling out 50% of the 530 million barrels of gross recoverable risked prospective resources by end of FY 2014, the company said. The company's aggressive exploration and development drilling programme is set to continue with more than 450 exploration, appraisal and development wells planned over the three year period till FY 2015-16, including 100 E&A wells to be drilled in the Rajasthan block, it added.
Cairn India's robust financial performance with strong revenues and profits has resulted in the company being well placed to not only develop the current asset base and deliver on the active exploration growth program with its US$3bn capex plan till FY 2015-16, but also opened up inorganic growth opportunities to further strengthen the E&P portfolio, the company said in a statement.
Cairn India's board of directors at a meeting held on Tuesday, 22 October 2013, declared an interim dividend of Rs 6 per share for the year ending 31 March 2014.
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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