Cairn India announces the unaudited financial results and operational achievements of Cairn India Limited and its subsidiary companies (referred to as “Cairn India”) during the first quarter of 2008.
OPERATIONAL
- Rajasthan on track for first commercial production H2 2009
- Larsen and Toubro Limited (L&T) awarded contract for the Engineering
Procurement and Construction (EPC) services for the export crude oil insulated pipeline and gas pipeline from Barmer, Rajasthan to Salaya, Gujarat
- Bhagyam Field Development Plan (FDP) approved by Government of India - resource potential to support plateau of 175,000 bopd from Mangala, Bhagyam and Aishwariya (MBA) fields in Rajasthan
- Bids submitted for offshore acreage in Sri Lanka
- Exploration programme for 2008 underway -15 exploration/appraisal wells planned plus 6 seismic surveys
CORPORATE
- Cairn India US$ 625 million private placement approved by shareholders at Extraordinary General Meeting (EGM)
FINANCIAL
The gross production of the operating units was 70,766 barrels of oil equivalent per day (boepd) in Q1 2008 (74,830 boepd in Q1 2007). The working interest production was 18,023 boepd in Q1 2008 (19,811 boepd in Q1 2007) and was higher in comparison to Q4 2007 (16,370 boepd).
“Cash flow from operations”, worked out as profit after tax prior to non-cash expenses (non-cash employee cost, depreciation, depletion, amortisation and deferred tax) and exploration cost, was Rs. 2,514 million (US$ 63.1 million) for Q1 2008 and for Q1 2007 was Rs 1,940 million (US$ 44.1 million).
Cash (net of borrowings) available as at 31 March 2008 was Rs. 13,767 million (US$ 346 million).
The consolidated revenue of Cairn India Limited and its subsidiaries for Q1 2008 is Rs. 3,158 million (US$ 79.3 million) and for Q1 2008 was Rs. 2,364 million (US$ 53.8 million).
The average oil price realisation in Q1 2008 was US$ 100.01 /bbl and for Q1 2007 was US $ 61.04 /bbl. The gas price realisation in Q1 2008 was US$ 4.08/mscf and for Q1 2007 was 4.07/mscf). Average price realisation per boe was US$ 73.32 in Q1 2008 and for Q1 2007 was US$
42.25.
The consolidated Profit before tax for Q1 2008 was Rs. 1,824 million (US$ 45.8 million) and for Q1 2007 was Rs. 692 million (US$ 15.7 million).
The consolidated Profit after providing for tax (including deferred tax and FBT) for Q1 2008 was Rs. 1,164 million (US$ 29.2 million) and for Q1 2007 was Rs. 376 million (US$ 8.5 million).
The Company has decided to retrospectively to account for stock options using the Intrinsic Value Method as against the Fair Value Method (Black Scholes) followed to the financial year ended 31 December 2007. Accordingly, the excess stock options provision has been reversed upto 31 December 2007 resulting in an exceptional gain of Rs. 156 million (US$ 3.9 million). Further the provision for the current quarter is lower by Rs. 68 million (US$ 1.7 million) due to this change.
Rahul Dhir, Chief Executive Officer said:
“We are delighted that the FDP for Bhagyam, the second biggest field in Rajasthan, has now been approved. Oil field development work in Rajasthan is well underway. The major contractors for the integrated upstream and midstream development are in place and on course to deliver first oil from Mangala in the second half of 2009.”