Cairn India Q3 profit soars nearly 15-fold to Rs604 crore
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New Delhi: Energy explorer Cairn India Ltd on Thursday said profit after tax in the December quarter jumped nearly 15-fold to Rs604 crore on account of better price realisation and lower expenses, up from a restated profit of Rs41 crore a year ago.
Crude oil price realisation jumped 31% to $46 a barrel, the company informed stock exchanges. The profit for the last comparable quarter was restated as required under the new accounting standards IndAS, which is based on fair valuation of assets and liabilities.
Net revenue jumped 5% in the quarter under review to Rs2,149 crore from a year ago.
Earnings before interest, tax, depreciation and amortisation (Ebitda), a measure of profitability, stood at Rs1,067 crore, 51% up from a year ago.
During the quarter, Cairn produced 16.7 million barrels of oil equivalent across all its assets. “We have made use of the challenging oil price environment to achieve competitive returns even at Brent $40 a barrel for planned projects. We are in active discussions with world class oil field services companies to partner for the end to end outsourcing of certain projects,” the company stated, quoting acting chief executive officer Sudhir Mathur. The idea is to optimise cost and expedite project execution.
Cairn said that its proposed merger with Vedanta Ltd. is expected to be completed in the first quarter of calendar year 2017 and the extension of its production sharing contract for the Barmer oilfield in Rajasthan was subjudice in the Delhi high court. The oil ministry is currently working on a new policy for extending the lease of 28 oil and gas blocks under terms that will let companies to invest more and add more revenue to the exchequer.