Cairn India profit rises 48% on higher crude oil output1 min read . Updated: 21 Jan 2013, 07:21 PM IST
Net income rose to `33.4 billion in the three months ended 31 December
New Delhi: Cairn India Ltd, operator of the nation’s biggest oilfield on land, reported 48% higher profit in the third quarter after it increased production.
Net income at Cairn India and its units rose to 33.4 billion ($623 million), or 16.5 a share, in the three months ended 31 December, the Gurgaon-based company said in a regulatory filing on Monday. That beat the 30.7-billion median estimate of 31 analysts surveyed by Bloomberg. Total revenue rose 38 % to 42.8 billion.
Cairn India, acquired by Vedanta Resources Plc for $8.67 billion in 2011, this month won approval to raise production from its biggest field in Rajasthan by 71%, helping boost earnings. The explorer sells crude at rates linked to Brent oil prices, unlike state-owned Oil and Natural Gas Corp., which is required to bear part of the country’s fuel subsidy.
Cairn India shares rose 1% to 340.30 at the close in Mumbai before the earnings announcement, valuing the company at $12 billion. The stock has gained 6.6% this year, outperforming a 3.5% increase in the benchmark Sensitive Index.
The explorer’s share of production from fields in India was 128,058 barrels of oil equivalent a day in the quarter ended 31 December, 29% higher than a year earlier and 1% lower than in the preceding quarter, the company said in the statement.
Net production from the Rajasthan field averaged 118,984 barrels of oil equivalent per day in the three months, compared with 87,585 barrels a day a year earlier and 120,261 barrels a day a quarter earlier.
The company sold its oil and gas at an average $94.90 a barrel of oil equivalent in the quarter, 4% lower than a year earlier, according to Monday’s statement. The average price of Brent traded in London rose 1% to $110.13 a barrel in the quarter from a year earlier.
The oil ministry approved an increase in Cairn India’s Rajasthan output to 300,000 barrels a day from the current 175,000, Oil minister Veerappa Moily said on 4 January. Cairn India owns 70% stake in the Rajasthan oil block and state-run Oil and Natural Gas Corp. owns the rest.
Vedanta Resources, a London-based miner controlled by billionaire Anil Agarwal, and unit Sesa Goa Ltd. completed buying a 59% stake in Cairn India from Cairn Energy Plc and other shareholders in December 2011. Bloomberg