Cairn India Limited (Consolidated) Third Quarter Results 2008
The following commentary is provided in respect of the unaudited financial results and operational achievements of Cairn India Limited and its subsidiary companies (referred to collectively as "Cairn India") during the third quarter of 2008.
Tweet-- The following commentary is provided in respect of the unaudited financial results and operational achievements of Cairn India Limited and its subsidiary companies (referred to collectively as "Cairn India") during the third quarter of 2008.
OPERATIONAL
Ø Development of the Mangala field in Rajasthan, on track with adequate liquidity in place to deliver first oil in H2 2009
Ø Revised Mangala Field Development Plan (FDP) submitted and represents a 30% increase in 2P reserves and an increase in peak off take to 125,000 barrels of oil per day( bopd )
Ø Two custom built rigs deployed for development drilling in Rajasthan and ongoing exploration
Ø Four appraisal/exploration wells planned for Q4 2008 in Rajasthan and Bihar
Ø Exploration licence to explore for oil and natural gas in the Mannar Basin awarded by the Government of Sri Lanka
Ø Gross operated production for Q3 2008 was 65,566 barrels of oil equivalent per day (boepd) (working interest 17,111 boepd)
FINANCIAL
The consolidated Profit before tax for Q3 2008 was Rs. 3,600 million (US$ 82.5 million) and for Q3 2007 was Rs. 674 million (US$ 16.6 million).
The consolidated Profit after providing for tax (including deferred tax and FBT) for Q3 2008 was Rs. 2,933 million (US$ 67.2 million) and for Q3 2007 was Rs. 232 million (US$ 5.7 million). Tax (including current tax and deferred tax) is calculated at entity level and not on a consolidated basis; losses arising within one jurisdiction are not available for offset against profits arising in another.
"Cash flow from operations", worked out as profit after tax (excluding other income) prior to non-cash expenses (non-cash employee cost, depreciation, depletion, amortisation and deferred tax) and exploration cost, was Rs. 2,169 million (US$ 49.7 million) for Q3 2008 and for Q3 2007 was Rs. 1,850 million (US$ 45.6 million).
Cash (net of borrowings) available as at 30 September 2008 was Rs. 31,284 million (US$ 667.5 million). In addition Cairn India has a loan facility of US$ 850 million.
The gross production of the operating units was 65,566 barrels of oil equivalent per day (boepd) in Q3 2008 (75,280 boepd in Q3 2007).The working interest production was 17,111 boepd in Q3 2008 (18,871 boepd in Q3 2007).
The consolidated revenue of Cairn India Limited for Q3 for 2008 was Rs. 3,206 million (US$ 73.5 million) and for Q3 2007 was Rs. 2,658 million (US$ 65.6 million)
The average oil price realisation in Q3 2008 was US$ 116.3/bbl and for Q3 2007 was US $77.2/bbl. The gas price realisation in Q3 2008 was US $ 4.1/mscf, at par with the corresponding quarter last year.
Average price realisation per barrel of oil equivalent (boe) was US$ 87.3 in Q3 2008 against US$ 58.4 in Q3 2007.
Amounts shown in US$ are converted based on an average exchange rate for the Q3 2008 of 43.65 (Q3 2007 average rate was 40.53) and a closing exchange rate as on 30th September 2008 of 46.87 (Q3 2007 closing rate was 39.85).
Rahul Dhir, Chief Executive Officer said:
"Cairn India continues to focus efforts on driving forward the Rajasthan upstream and midstream developments and remains on track with adequate financial liquidity to deliver first oil from Mangala in H2 2009."