Cairn India

The company posted a very disappointing performance for Q3FY15, reporting a 14% (YoY) drop in consolidated net profit at Rs.2884 crore though total income had risen 7% at Rs.5011 crore. Thus the drop in net profit is attributed to a forex loss of Rs.129 crore as against a gain of Rs.429 crore in previous Q3. EBITDA was down 41% at Rs.2113 crore and EBITDA margins dropped from 71% to 60%.

The company was a victim of the lower crude prices and this pushed down the realization to $68.1/ boe, down 25%. This was partially offset by 13% higher volumes and 2% rupee depreciation on sequential basis. During the quarter, total profit petroleum was Rs.1,113 crore  including Rs.949 crore for Rajasthan block. For the quarter, royalty for the RJ block was Rs.694 crore.  Depreciation and Depletion charge for the quarter was higher at Rs.891crore, compared to Rs.703 crore (QoQ) due to 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.

For the nine month period, Cairn had gross production of over 57.8mmbbls of oil equivalent from its three producing blocks where it enjoys 100% operatorship, of which net working interest production was 36.4mmbbls. For the quarter, gross production was strong at 20mmbbls of oil equivalent with daily production at 218,900 barrels.