Cairn Posts Highest-ever Quarterly Net at 3,826 cr

Cairn India on Monday beat the Street with its highest-ever quarterly net profit, aided largely by foreign exchange gains and higher crude oil output. The operator of the Barmer block in Rajasthan, India's largest on-land oil block, reported a net profit of . 3,826 crore for the quarter ended June 2012, up 75%, against a net profit of . 2,186 crore on a quarter-on-quarter (Q-o-Q) basis. The company reported forex gains of . 866 crore in the first quarter of FY13.  "We have recently crossed the cumulative production milestone of 100 million barrels from the Rajasthan block. This has helped us reduce oil imports by $9 billion and has contributed $3 billion to the national exchequer. With the support of the Government of India, Government of Rajasthan and our JV partner ONGC, we are well poised to further explore the potential in the hydrocarbon-rich Barmer Basin in Rajasthan, thereby contributing to reduce our nation's crude import dependence," said Rahul Dhir, managing director and chief executive officer, Cairn India.  The company's sales rose 21% to . 4,440 crore during the June 2012 quarter compared to . 3,651 crore, Q-o-Q. Cairn India's consolidated net forex gain stood at . 866 crore in the quarter ended June 2012 as against just . 3 crore in the year-ago period. Other income too went up to . 96.4 crore from . 52.8 crore. Consolidated income from operations increased 19.6% to . 4,440 crore from . 3,712.7 crore during the same period. The company's EBITDA rose by 9% Y-o-Y to . 3,457 crore in the first quarter.  The explorer is currently looking to increase its Rajasthan field output from the current levels of 175,000 barrels per day to 300,000 bpd (15 million tonnes per annum) and has filed an application with the oil ministry seeking permission to explore within the ringfenced development area that contains 25 oil and gas finds. Anil Agarwal, chairman, Vedanta, has sought Prime Minister Manmohan  Singh's intervention in the matter. "Gross production helped reduce nation's crude oil import dependence by $1.8 billion and gross contribution to the national exchequer (excluding direct taxes) was $800 million," said the company. Cairn currently produces 150,000 bpd from Mangala and about 25,000 bpd from Bhagyam fields in the Barmer block.