Amid Steep Fall In Crude Oil Prices, Cairn India Misses Forecast In Third Quarter

Domestic oil and gas exploration and production company Cairn India registered 41% fall in it's third quarter (Q3) consolidated net profit registered 41% fall owing to lower crude oil prices, as per a news report.

In the quarter which ended December 2014, consolidated revenue of the company slumped 12% to Rs 3,504 crore as against Rs 3,982 crore in previous quarter on account of lower realizations of $68.1 a barrel.

As per the oil & gas producer’s filing to the exchange: "This was partially offset by 13% higher volumes and 2% rupee depreciation on sequential basis."

Cairn India also added that the production in Rajasthan surged by 10% at 1.8 lakh barrels of oil equivalent per day (boepd) in Q3. At the same time, it also revealed that the growth in production in offshore assets increased by 24%; and this was driven by operational interventions.

It also stressed that "Gas development continues in line with the target to double gas production through existing gas pipeline by Q4 FY15."

In the third quarter, Cairn India also recorded a fall of 23.7% quarter-on-quarter (Q-o-Q) to Rs 2,027 crore in its operating profit. This was a result of higher cess on account of higher production, softer realizations, and an increase in exploration expense in seismic surveys.
(Image: The Economic Times)