Cairn India’s consolidated net profit for the July-Sept quarter declined 51% to Rs 763 crore year-on-year mainly on account of the company making provisions for royalty which Cairn will have to bear for its 70% share in the Rajasthan oilfields.
The company also reported a marginal drop in revenue to Rs 2,652.2 crore.
Rahul Dhir, managing director and chief executive officer, Cairn India said, " Last month, shareholders of Cairn India accepted the pre-conditions laid down by the Government for the proposed Cairn Energy-Vedanta Resources stake sale deal."
The two conditions were – making royalty paid for Rajasthan oil fields cost recoverable and withdrawal of arbitration cases by Cairn India.
Dhir further said that with strong support from the government, the company is poised to optimise development of the Rajasthan resource. Profit petroleum from Rajasthan oilfields for the second quarter after the royalty adjustment stood at Rs 158.4 crore. The profit petroleum reduced by Rs 502.9 crore on account of royalty becoming cost recoverable. Profit petroleum is Government’s share of profit from the oilfields.
The company expects to close FY12 at a production rate of 175,000 barrels of oil per day from the Rajasthan fields. The company envisages a basin potential of 240,000 bopd (equivalent to a contribution of approximately 30 per cent of India’s total domestic current crude production).
Meanwhile, Cairn India shares closed the day at Rs 294 on the Bombay Stock Exchange
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
No comments:
Post a Comment