Cairn Energy records impairment on Indian holding

Cairn Energy Plc on Tuesday said it has taken impairment on account of its holding in Cairn India Ltd. The decline in the market value of Carin India resulted in an impairment charge of $319 million for 2015 ($194m in 2014), the Edinburgh-based company said in its preliminary result statement.

Cairn Energy holds 9.8 per cent in the Indian company after it sold off its majority stake to Anil Agarwal-promoted Vedanta Group. As on December 31, 2015, the value of the investment in Cairn India had fallen to $384 million.

The accumulated deficit during 2015 of $318.6 million ($194.3 million in 2014 - the cumulative deficit from July 1, 2013 to December 31, 2014) was recycled to the income statement and recorded as impairment, the company said.