Cairn India net profit up 48%; to being $600 mn exploration
approval from the government for drilling exploratory wells within the producing oilfields in the Rajasthan block, a move that will help it add reserves.
It is now targetting to drill the first exploration well in the Rajasthan fields by end of the current fiscal.
Also, Cairn has managed a rig to drill a well ahead of schedule in Sri Lanka while it will begin seismic surveys in the exploration block it recently acquired in South Africa.
Company CEO P Elango said Cairn and its partner ONGC "appreciates policy clarity to carry out exploration in existing development blocks. It is a significant step for the nation towards energy self-sufficiency and will not only add to economic growth but also reduce the fiscal deficit through increased contribution to the exchequer".
Cairn is now looking to focus on gas prospects in Rajasthan and bring them to commercial production as fast as possible.
However, its income from operations declined 4 per cent to Rs 4278 crore, QoQ after paying royalty for Rajasthan blocks in which it has 70 per cent participating interest.
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 4.9 per cent QoQ to Rs 3,258 crore in October-December quarter.
Cairn said it has decided to pay an interim dividend of Rs 5 a share.
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