Cairn India today reported an 18 per cent rise in its March quarter net profit as crude oil production from its showpiece Rajasthan fields soared.
Net profit in the January-March quarter rose to Rs 3,035 crore, or Rs 15.85 per share, from Rs 2,564 crore, or Rs 13.41 a share, a year ago, the company said in a statement here. Sales climbed 16 per cent to Rs 5,049 crore.
Cairn declared a final dividend of Rs 6.50 per share for the year ended March 31, 2014. Oil production from its Rajasthan fields rose 12 per cent to 189,304 barrels per day in the fourth quarter.
“Cairn successfully achieved its target FY13-14 exit rate of production from Rajasthan of 200,000 barrels of oil equivalent per day (boepd),” the statement said. For the full 2013-14 fiscal, net profit rose 4.3 per cent to Rs 12,431.79 crore. Sales increased to Rs 18,761.70 crore from Rs 17,524.15 crore in 2012-13.
“Our performance over the last fiscal reflects of our unique position of delivering industry-leading production growth, which has contributed to reduction in imports and has also benefited all stakeholders,” Cairn chief executive Elango P said.
In Rajasthan, Cairn achieved a landmark cumulative oil production of 200 million barrels and a 200,000 boepd
production milestone in March 2014.
“We have also significantly added to our resource base by delivering a rapid exploration and appraisal drilling programme with a success ratio of 50 per cent, establishing six discoveries and adding over 1 billion barrels of oil and gs in-place,” he said.
Since resumption of exploration in March 2013, Cairn said it has added over 1 billion barrels of oil equivalent in-place reserves to the existing 4.2 billion barrels of oil equivalent.
“Of the 17 exploration wells drilled to date, over 80 per cent have shown hydrocarbons. Till date, six discoveries have been established and the testing of the other hydrocarbon bearing wells is under way. The evaluation of the discoveries in the tight reservoirs is on-going to establish recovery rates,” the statement said.