New Delhi, Oct 22: Cairn India Ltd said it has more than tripled its net profit in September quarter to Rs 2,322.18 crore on the back of higher production, and will consider its maiden dividend payout on October 31.
Net profit in July-September quarter last year stood at Rs 763.03 crore, a company statement said here.
Cairn produced an average of 171,801 barrels per day (bpd) of crude oil from its prolific Rajasthan fields, up from 125,251 bpd a year ago. This increased production helped offset $ 142 million or Rs 786 crore of foreign exchange loss due to rupee appreciation.
Cairn said revenue rose 68 per cent to Rs 4,443.1 crore.
Also, the company reported resolution of a dispute over laying of a 80-km pipeline from Salaya to Bhogat in Gujarat.
Completion of this section by first half of 2013 would connect the Barmer oil fields to west coast, enabling more refineries to receive Rajasthan crude.
Cairn transports 175,000 bpd of current output from Rajasthan to refiners like Reliance Industries and Essar Oil in Gujarat through a 590-km pipeline from Barmer to Salaya.
The company said Mangala oilfield, the largest among 25 oil and gas finds the firm has made in the Rajasthan block, is producing at approved plateau of 150,000 bpd while Bhagyam, the second biggest field, is producing 25,000 bpd.
This along with output from its other fields helped in reducing India's import bill by $ 1.8 billion and contributed $ 0.8 billion to national exchequer in taxes and levies, Cairn India CEO P Elango said.
“The quarter saw consistent production from our flagship Rajasthan asset. The block continues to produce 175,000 bpd, which is more than 20 per cent of India's domestic oil production,” he said. “Work to enhance production from the block continues to remain our focus.”
Cairn has received all government approvals for its corporate re-organisation. “Implementation of this will help simplify and consolidate the multi-layered structure of Cairn India comprising foreign subsidiaries,” Elango said.
The company Board will meet on October 31 to consider payment of interim dividend, the statement said. The company had a net cash of Rs 12,442.7 crore as on September 30.
Elango said the company had made “good progress” with the government on its proposal to do further exploration in the Rajasthan block.
The company is now making all pre-drilling preparations so that it can start drilling the moment it gets the final nod.
Also, the company expects to begin production from Aishwariya field, the third largest in Rajastan, by end of 2012-13 fiscal. Initial production would be about 10,000 bpd.
Cairn said its shareholders had approved a restructuring of the company and some of its wholly owned foreign subsidiaries (Cairn Energy India Pty Ltd, Cairn Energy India West BV, Cairn Energy Cambay BV, and Cairn Energy Gujarat BV).
This was approved by the High Courts of Bombay and Madras in 2010, subject to the receipt of other regulatory approvals which have been received in October, 2012, Cairn said.
“Implementation of (this) scheme will ultimately help in the consolidation of Indian businesses held by these foreign subsidiaries, directly under Cairn India,” it said.
After oil, Cairn is now targeting natural gas prospects in the Rajasthan block.
The firm, which had previously made a small gas discovery in block, is hopeful of finding a big enough find that would generate surplus gas that can be sold commercially after meeting fuel requirement of captive power unit.
Cairn realised $98.1 per barrel on crude sale in July-September quarter, down from $ 102.8 per barrel in the same period a year ago.
The average US Dollar-Rupee exchange rate for the quarter was Rs 55.15 versus Rs 54.1 for corresponding quarter of previous year. The closing exchange rate as on September 30, 2012 was Rs 52.72.
