Vedanta Group company Cairn India on Thursday reported a 53% drop in its third quarter net profit. The oil and gas explorer reported a profit after tax of Rs 1,350 crore (Rs 2,884 crore) on a revenue of Rs 3,504 crore (Rs 5,000 crore) during October-December FY15. The drop in net profit was primarily due to a 29% slump in crude price, which averaged $68.7/barrel in the third quarter of the current fiscal against $96.3/barrel in the corresponding quarter last year.
The numbers trail analysts’ expectations, which pegged profit to decline 40% to Rs 1,625 crore on a revenue of Rs 3,350 crore. Cairn India’s prolific Barmer block in Rajasthan produced 180,000 barrels of oil equivalent per day (boepd) in Q3 FY15 while gross operated volumes from all assets touched 228,622 boepd, 2% less than that in Q3 FY14, says a stock exchange filling.
In Q3 FY15, earnings before interest, tax, depreciation and amortisation (Ebitda) were Rs 2,113 crore compared to Rs 3,555 crore in the same quarter last year. The drop was because of lower realisations, higher cess on account of higher production and an increase in exploration expense in seismic surveys. The Ebitda margin came in lower at 60%.
“Our operating costs at Rajasthan continue to remain in single digits at $5.7 per barrel,” Cairn said in its statement.
During October-December 2014, a total of $247 million was invested, taking nine-month net capex to $785 million. Gross cumulative capex on development in Rajasthan stood at $4.9 billion. Capex on exploration was $1 billion as on December 31, 2014.
The Barmer block produced 16.6 million barrels of oil equivalent in the quarter at an average of 180,010 boepd, achieving total production of 266 mmboe until the end of Q3 FY15, with facility up time at 98.3%.