High crude oil production have helped Cairn India beat analyst estimates and post a tenfold increase in its fourth quarter profit. During the quarter, the company posted a net income of Rs 2,460 crore against Rs 245 crore in the corresponding previous quarter, the company said in a statement.
“We have been able to ramp up the Mangala production in Rajasthan to 125,000 barrels of oil per day and deliver almost 40 million barrels of crude oil to Indian refineries. We are well placed for the exploration drilling campaign in the frontier Mannar Basin in Sri Lanka later this year,” Rahul Dhir, managing director and chief executive officer, Cairn India, said.
Cairn India sells crude oil at market price.
UK-based Cairn Energy Plc, the parent company to Cairn India, plans to sell 40 per cent stake in the Indian subsidiary to billionaire Anil Agarwal’s Vedanta Resources Plc and is awaiting approval from the Indian government.
Vedanta will pay $9.4 billion to acquire a majority holding in Cairn India. This includes 8.1 per cent from investors through open offer and a 10.4 per cent stake from Malaysia’s Petronas International Corp.
Cairn, which is awaiting approval from the directorate general of hydrocarbons and the government to increase production to 150,000 barrels a day, began production from the Mangala field in Rajasthan in August 2009.
Its customer include Indian Oil Corporation and Reliance Industries (RIL) among others.
Oil and Natural Gas Corporation, India’s biggest energy explorer and Cairn's 30 per cent partner in the Rajasthan block pays royalty on the entire production.
Cairn India share closed unchanged at Rs 338 on the Bombay Stock Exchange.
