Cairn India fell 0.92% to Rs 236.50 at 09:18 IST on BSE after consolidated net profit fell 53.2% to Rs 1349.64 crore on 19.76% decline in total income to Rs 4020.57 crore in Q3 December 2014 over Q3 December 2013.
The result was announced after market hours yesterday, 22 January 2015.
Meanwhile, the BSE Sensex was up 358.91 points, or 1.24%, to 29,364.93
On BSE, so far 41,288 shares were traded in the counter, compared with an average volume of 2.64 lakh shares in the past one quarter.
The stock hit a high of Rs 239.70 and a low of Rs 235.20 so far during the day. The stock hit a 52-week high of Rs 385 on 11 June 2014. The stock hit a 52-week low of Rs 228.40 on 17 December 2014.
The large-cap company has an equity capital of Rs 1874.83 crore. Face value per share is Rs 10.
Cairn India's earnings before interest, tax, depreciation and amortisation (EBITDA) was Rs 2113 crore for Q3 December 2014 compared to Rs 2701 crore in Q2 September 2014, impacted by softer realizations, higher cess on account of higher production and an increase in exploration expense in seismic surveys. The EBITDA margins came in lower at 60%. The company's operating costs at Rajasthan continue to remain in single digits at $5.7 per barrel.
Depreciation and depletion charge for the quarter was higher at Rs 891 crore, compared to Rs 703 crore in Q2 September 2014, as a result of an increase in production, capitalization of assets and the impact of the accounting policy basis unit of production method. Other income for the quarter was lower at Rs 163 crore due to relatively lower realized gains. Total other income including unrealized gains is Rs 457 crore compared to Rs 464 crore in previous quarter.
Net revenue for Q3 December 2014, post profit sharing with the Government of India and the royalty expense in the Rajasthan block, was Rs 3504 crore down 12% over Q2 September 2014, on account of lower realizations of $68.1 per boe, which was down 25%, due to the softer crude prices. This was partially offset by 13% higher volumes and 2% rupee depreciation on sequential basis. During the quarter, total profit petroleum was Rs 1113 crore including Rs 949 crore for Rajasthan block. For the quarter, royalty for the RJ block was Rs 694 crore.
Cairn India's revenue and profits declined sharply due to lower crude oil price realization as global crude oil prices fell sharply. Cairn India said that the company is well positioned in the current crude price environment, with low operating costs of $6 per barrel.
Cairn India's Managing Director and CEO Mayank Ashar said that the company's cash rich balance sheet and best-in-class cost profile provide a solid foundation to operate its high margin core fields. This gives the company the optionality to be selective about growth projects, contingent upon the oil price environment, Ashar said. He further said that the company is uniquely positioned to generate positive free cash flows. The company has a strong balance sheet with net cash of Rs 17784 crore providing resilience.
Cairn India is an independent oil and gas exploration and production companies in India.
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