Cairn India Q3 net profits up 44 percent

Private oil and gas producer Cairn India Monday posted a 44 percent rise in its net profit in third quarter ended December 2012, over the corresponding quarter of last fiscal.

The company registered a profit after tax (PAT) of Rs.33,448.90 million for the quarter as compared to Rs.22,619.30 million for the quarter ended Dec 31, 2011.

Total income increased to Rs.46,951.70 million from Rs.35,105.80 million for the third quarter in 2011.

The company had logged a Rs.7.86 billion loss in the previous quarter.

Cairn India's income from operations, however, declined four percent to Rs.42.78 billion year-on-year after paying royalty for operating Rajasthan blocks in which it has 70 percent participating interest. State explorer ONGC holds the remaining 30 percent stake.

The company said the average output from its Rajasthan block stood at 1,69,977 barrels per day (bpd) for the quarter ending Dec 2012, while average gross output rose by 21 percent quarter-on-quarter to 205,014 bpd.

"Cairn brought the Rajasthan block to production within five years of discovery. The current production from Rajasthan block contributes to over 20 percent of the nation's oil production. Over the past three years our understanding of the Barmer Basin has increased and we see tremendous potential going forward," said P. Elango, interim CEO, in a statement.

Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 4.9 percent year-on-year to Rs.32.58 billion in the Oct-Dec quarter.

Among other highlights, the company announced a strong balance sheet with net cash of Rs.146 billion as on Dec 31, 2012, and that it helped reduce nation's crude oil import dependence by $1.7 billion gross

"The Cairn-ONGC joint venture greatly appreciates policy clarity to carry out exploration in existing development blocks. It is a significant step for the nation towards energy self-sufficiency and will not only add to economic growth but also reduce the fiscal deficit through increased contribution to the exchequer," added Elango.