Cairn India’s Q2FY14 Topline Up By 14 Per Cent

Cairn India posted robust numbers during Q2FY14 owing to an increase in production, mainly from its Rajasthan assets. The company’s crude oil production has reached 213300 barrels of oil equivalent per day (boepd), an increase of 0.4% on a QoQ basis, and it expects the production to reach 225000 boepd by the year end.

On account of this, the company’s revenue during the quarter ending September 2013 shot up to Rs 4650 crore, while its EBITDA touched Rs 3610 crore, up by 14% and 19% respectively from that in the corresponding period last year. During this period, the company’s PAT also grew to Rs 3385 crore, up 8% from that in Q2FY13. Its contribution to the national exchequer during the quarter stood at USD 1 billion.

Following this impressive performance, Cairn’s board declared an interim dividend of Rs 6 per equity share. The company’s cash flow also rose by 17% on a quarterly basis to Rs 2856 crore.

Cairn has completed 4 years of oil production from the Rajasthan block and has produced 180 mmboe from the Thar oil fields so far. So far in 2013, the company has drilled 6 fields in Rajasthan, out of which it found hydrocarbons in 4 fields. One discovery has opened up a new play type and the potential commerciality of Raageshwari S-1 discovery in Rajasthan has already been filled.

The company has also witnessed encouraging signs in the KG basin. After successful drilling and fracking of the first appraisal well, productivity has increased threefold and the company is quite optimistic regarding the commercial viability of its Nagayalanka discovery. In another major development Cairn India has secured approval for implementation of the world’s largest polymer enhanced oil recovery (EOR) project in Mangala, Rajasthan.

As regards the performance of the company, Cairn India’s Wholetime Director, Elango P said, “We are focused on enhancing the recovery efficiency from our producing fields through the use of cutting-edge EOR techniques. We remain excited on the regulatory front, particularly on the recently announced policy on the Integrated Development Plan by the government”.