Cairn India has
reported that its net profit more than
tripled in the September quarter to Rs 2,322.18 crore, on the
back of higher production .
Net profit in July-September quarter last year stood at Rs 763.03 crore.
The company will consider its maiden dividend payout on October 31, a statement from Cairn India said. It reported that
revenue for the quarter under review rose 68 per cent to Rs 4,443.1 crore.
Cairn India produced an average of 171,801 barrels per day (bpd) of crude oil from its prolific Rajasthan fields, up from 125,251 bpd a year ago. The increased production helped offset $142 million or Rs 786 crore of foreign exchange loss due to rupee appreciation.
The company a dispute over laying of a 80-km pipeline from Salaya to Bhogat in Gujarat has now been resolved.
Completion of this section by first half of 2013 would connect the Barmer oil fields to west coast, enabling more refineries to receive Rajasthan crude.
Cairn transports 175,000 bpd of current output from Rajasthan to refiners like Reliance Industries and Essar Oil in Gujarat through a 590-km pipeline from Barmer to Salaya.
The company said
Mangala oilfield, the largest among 25 oil and gas finds the firm has made in the Rajasthan block, is producing at approved plateau of 150,000 bpd. Bhagyam, the second biggest field, is producing 25,000 bpd.
"This along with output from its other fields helped in reducing India's import bill by $1.8 billion and contributed $0.8 billion to national exchequer in taxes and levies,"
Cairn India CEO P Elango said.
"The quarter saw consistent production from our flagship Rajasthan asset. The block continues to produce 175,000 bpd, which is more than 20 per cent of India's domestic oil production. Work to enhance production from the block continues to remain our focus," he said.
Cairn has received all government approvals for its corporate re-organisation.
"Implementation of this will help simplify and consolidate the multi-layered structure of Cairn India comprising foreign subsidiaries," Elango said.
Elango said the company had made "good progress" with the government on its proposal to do further exploration in the Rajasthan block.
The company is now making all pre-drilling preparations so that it can start drilling the moment it gets the final nod.
Also, the company expects to begin production from Aishwariya field, the third largest in Rajastan, by end of 2012-13 fiscal. Initial production would be about 10,000 bpd.
The company Board will meet on October 31 to consider payment of interim dividend. It had a net cash of Rs 12,442.7 crore as on September 30, 2012.
With inputs from PTI
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