Wednesday, January 25, 2012

Cairn India's Q3 net up 13%, co says growth plans on track

Cairn Indian has posted a net profit of Rs 2262 crore for the December quarter, up.13%. year-on-year on the back of forex gains of Rs 626 crore.

Sales, however remained flat at Rs 3096 as realisations from its Rajasthan fields remained flat at a production rate of 125,000 barrel of oil per day (bopd) y-o-y.

However, the company expects to close fiscal 2011-12 at a production rate of 175,000 bopd, which sounds little bullish, say analysts but can be achieved if no roadblocks occur.

The company's Mangala, Bhagyam and Aishwariya oil fields in Rajashtan have gross recoverable reserves and resources of around a billion barrels. These fields have the potential to produce a fifth of India's entire crude production once its approved plateau rate of 175,000 bpd is reached, claims Rahul Dhir, Cairn India's managing director and chief executive officer.

Giving an update on the company's oil block in Sri Lanka Dhir added that Cairn has successfully completed the first phase of the exploration campaign in Sri Lanka which included deep water drilling programme and will soon start the second phase of exploration.

With the company being stable with its expansion plans, the management hopes to exit the fiscal in the green.

Meanwhile, the EPS grew to Rs 11.85 vs Rs 10.53 y-o-y. Shares of the company closed the day at Rs 351.75, up 1.93%.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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