Cairn India profit surges 869% (y-o-y)

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Cairn India profit surges 869% (y-o-y)
Cairn India: Quotes, News
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Cairn India, oil and gas exploration company reported a whopping rise of 869% in its net profit for Q1 FY12. Company's net profit upsurged to Rs 2726.6 crore on account of higher output.

Company which focus to deliver more than 50 million barrels of crude oil to Indian refineries exhibited a 342% rise in its revenues. Its revenue rose to Rs 3712.7 crore during the period April-June.

Last month, Prime Minister Manmohan Singh gave approval to Vedanta Resources to acquire 40% stake in Cairn India on the condition it pays royalties on output from the field in western Rajasthan state.

Company's Rajasthan unit has the capacity to produce 125,000 barrels of oil per day. The oil was sold at $105.90 a barrel compared with $71.80 a year earlier.

Company is being asked by Indian oil ministry to share royalty payments with state-owned Oil and Natural Gas Corp (ONGC), which has 30% stake in Cairn operated fields in western India.

“It should be noted that if royalty were to be cost recoverable, it would lead to a decline in the revenues and profit after tax for the current quarter by Rs 12,916 million (Rs 1,291 crore, or S$289 million)," the company said in statement.

Company which is close to seal its deal with London based - Vedanta Resources said it would seek shareholder approval to consider the conditions imposed by the government of India.

OneIndia Money

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