Cairn India Ltd Q1 2009 Resul
For Immediate Release
29 July 2009
Cairn Energy PLC
Cairn India Limited Q1 2009 Results
The attached release was issued today by Cairn India Limited ('Cairn India') to the Bombay Stock Exchange and the National Stock Exchange of India.
In accordance with its Indian reporting obligations, Cairn India has today issued its Q1 2009 financial results. This financial information is reported in Indian rupees and is prepared under Indian GAAP.
Cairn Energy PLC has a 65% holding in Cairn India.
Key differences between the financials prepared under Indian GAAP to those under IFRS are summarised in the table below:
|
|
IGAAP |
IFRS |
|
Accounting policy |
|
|
|
Exploration write off (income statement) |
Unsuccessful and other exploration costs (eg seismic) are expensed as incurred. |
Unsuccessful costs are written off; other exploration costs are capitalised pending determination. |
|
Depletion & Decommissioning |
Based on working interest production and reserves. |
Based on entitlement interest production and reserves. |
|
Foreign exchange (income statement recognition) |
Exchange gains and losses recognised on translation of US$ transactions/balances into INR reporting currency. |
No exchange gains or losses recognised on US$ transactions/balances where US$ is also the functional currency. |
|
Revenue recognition (Income Statement) |
Revenues remitted to the Government of India pursuant to its directive to recover disputed Ravva profit petroleum are fully recognised and provided against through an exceptional charge to profit. |
Revenues remitted to the Government of India pursuant to its directive to recover disputed Ravva profit petroleum are not recognised. Those revenues are disclosed as a contingent asset. |
|
Share Based Payments |
Charge based on intrinsic value. |
Charge based on fair value. |
|
Disclosure |
|
|
|
Operator fees |
Included in income from operations. |
Included within other operating income. |
|
Interest income |
Included in other income. |
Included in finance income. |
For Immediate Release 29 July 2009
Cairn India Limited First Quarter Financial Results
for the period ended 30 June 2009
The following commentary is provided in respect of the unaudited financial results and operational achievements of Cairn India Limited and its subsidiary companies (referred to as 'Cairn India') during the first quarter of 2009-10. Please note that the fiscal year 2009-10 (FY 09-10) refers to the period April 2009 - March 2010.
OPERATIONAL
-
Revised Mangala Field Development Plan including pipeline and higher processing capacity of 205,000 bopd approved by the Government of India Management Committee
-
The commercial terms and pricing negotiations for the initial offtake of the Rajasthan crude have been concluded with GoI nominees, IOC and MRPL. In accordance with the Production Sharing Contract this pricing is based on comparable low sulphur crude, frequently traded in the region - Bonny Light, with appropriate adjustments for crude quality
-
The implied price realisation represents a 10-15% discount to Brent on the basis of prices prevailing for the six months to June 2009. This pricing is subject to GoI approval
-
28 Mangala development wells drilled to date of which 16 completed
-
Train one facilities and trucking logistics are complete and ready. Cairn is working with the Government authorities to start production from the Mangala field in Rajasthan in August 2009
-
Construction on Train two (50,000 bopd) and the pipeline is targeted for completion by the end of 2009. Weather and other factors continue to pose schedule risks. Cairn and its major contractor, Larsen and Toubro, are working to mitigate these risks
-
Train three (50,000 bopd) which will follow Train two is progressing on target to attain Mangala plateau production of 125,000 bopd by H1 2010
-
Further studies being conducted in Ravva to identify additional resources and bypassed oil
-
CB/OS-2 average gross production increased to 14,506 barrels of oil equivalent per day
-
Work initiated for seismic activities in Sri Lanka and the Palar basin
FINANCIAL
-
Profit after tax of Indian rupees INR 454 million (USD 9.3 million)
-
Gross cumulative Rajasthan development capex spent to date USD 1.6 billion, out of which USD 267 million was spent during the quarter
The gross production of the operating units was 59,461 boepd in Q1 2009-10 (71,082 boepd in corresponding quarter of previous year) and the working interest production was 15,917 boepd in Q1 2009-10 (18,764 boepd in corresponding quarter of previous year).
'Cash flow from operations', worked out as profit after tax (excluding other income) prior to non-cash expenses (non-cash employee cost, depreciation, depletion, amortization and deferred tax) and exploration cost was INR 1,170 million (USD 24 million) for Q1 2009-10 as compared with INR 2,509 million (USD 60 million) for corresponding quarter of previous year.
Cash (net of borrowings) available as at 30 June 2009 was INR 9,976 million (USD 208 million).
The consolidated revenue of Cairn India for Q1 2009-10 was INR 2,049 million (USD 42 million) as compared with INR 4,036 million (USD 97 million) for corresponding quarter of previous year.
The average oil price realisation in Q1 2009-10 was USD 60.2/bbl and for corresponding quarter of previous year was USD 125.9/bbl. The gas price realisation in Q1 2009-10 was USD 4.0/mscf and for corresponding quarter previous year was USD 4.3/mscf.
Average price realisation per boe was USD 51.2 in Q1 2009-10 and for corresponding quarter of previous year was USD 95.2.
An exceptional provision of INR 1637 million (USD 34.2 million) has been made, on a conservative basis, in respect of amount deducted by the buyers and remitted to the GoI pursuant to its directive to recover profit petroleum of earlier years in relation to 'ONGC Carry' case. The matter is currently under appeal at a higher court.
The consolidated profit before tax for Q1 2009-10 was INR 244 million (USD 5 million) as compared to INR 2,196 million (USD 53 million) for the corresponding quarter of previous year.
The consolidated profit after provision for tax (including deferred tax and Fringe Benefit Tax (FBT)) for Q1 2009-10 was INR 454 million (USD 9 million) as compared to INR 1,386 million (USD 33 million) for the corresponding quarter of previous year.
Tax (including current tax and deferred tax) is calculated at entity level and not on a consolidated basis; losses arising within one jurisdiction are not available for offset against profit arising in another.
Amounts shown in USD are converted based on average exchange rate for the Q1 2009-10 of INR 48.71 for revenue items and at the closing exchange rate as on 30 June 2009 of INR 47.87 in respect of cash balance (average rate of corresponding quarter of previous year was INR 41.65).
Rahul Dhir, Managing Director and Chief Executive Officer, Cairn India said:
The start of oil production from Rajasthan will be a major milestone for Cairn India and we are working with the central and state governments in India to ensure this project of national importance starts in August 2009.
We are pleased to have concluded pricing negotiations with MRPL and IOC for the initial quantities of crude from Rajasthan which currently represents a 10 to 15 percent discount to Brent.
With continued investment in its potential I firmly believe the Rajasthan Barmer basin has the ability to deliver long term value growth for stakeholders.'
OPERATIONAL REVIEW
Gross operated production for the first quarter was 59,461 boepd (working interest 15,917 boepd).
Rajasthan (Block RJ-ON-90/1) (Cairn India 70% (Operator); ONGC 30%)
.
The revised Mangala Field Development Plan incorporating an increased offtake to 125,000 bopd for Mangala, higher processing capacity of 205,000 bopd for Mangala Processing Terminal (MPT) and pipeline to the Gujarat coast has been approved by the GoI, MC (Cairn, ONGC and the Director General Hydrocarbons). Cairn India and its JV partner ONGC have an area of 3,111 km2 under long term contract on the Rajasthan licence.
Approximately 11,000 people are currently involved in the construction of both the upstream and midstream projects.
Development - Upstream
The facilities at Train one of the MPT are complete and ready to start production. The crude will be initially evacuated via trucking in August 2009.
All of the key elements at the Mangala Processing Terminal (MPT) to enable production from Trains two and three are progressing. Work on the well pads, the Raageshwari gas terminal, the Thumbli water field, in-field pipelines, processing facilities, buildings, power generation and associated utilities are well advanced. The construction of Trains two and three at the MPT with a combined capacity of 100,000 bopd is targeted to attain Mangala plateau production of 125,000 bopd by H1 2010.
Development drilling and well completion activities are currently underway with two drilling rigs and one completion rig operating in the Mangala development area. To date 28 wells have been drilled of which 16 wells have been completed and made ready for initial production. The wells drilled to date will support the ramp up production profile for the Mangala field.
Development - Midstream (Pipeline)
The export pipeline route passes through the states of Rajasthan and Gujarat covering eight districts and more than 250 villages. Work is currently in progress across nine construction spreads.
The final construction approvals have been received and all land purchases for the above ground installations (AGI's) and main terminals have been completed. All long lead items and materials have been delivered to the site to ensure smooth completion of the pipeline.
Weather and other factors continue to pose schedule risks. Cairn and its major contractor, Larsen and Toubro, are working to mitigate these risks to deliver completion by the end of 2009. Of the total length of ~600 km pipeline from the MPT to Salaya in Gujarat, line pipe of ~ 520 km has been welded and more than 400 km has been laid below the ground. More than 70% of the construction activities have been completed at all of the 32 heating stations on the route of the pipeline. Almost 90% of the construction work at the Viramgam terminal has been completed, while all the superstructures, main storage tanks and the intermediate pumping facilities are in advanced stage of completion.
Pre-commissioning and testing activities have commenced on the pipeline.
Crude - Sales
The GoI has nominated MRPL, IOC and HPCL for the offtake of initial crude quantities from the Rajasthan Block for the period 2009-10 and 2010-11. Discussions are in progress with GoI to allocate additional volumes.
The commercial terms and pricing negotiations for the initial offtake of the Rajasthan crude have been concluded with GoI nominees, IOC and MRPL. In accordance with the Production Sharing Contract this pricing is based on comparable low sulphur crude frequently traded in the region - Bonny Light, with appropriate adjustments for crude quality.
The implied price realisation represents a 10-15% discount to Brent on the basis of prices prevailing for the six months to June 2009. This pricing is subject to GoI approval.
The oil from Rajasthan is categorised as medium gravity and is of sweet grade with a low sulphur content of about 0.1% by weight. While the crude has a high pour point and viscosity due to its waxy nature, makes it an excellent secondary processing feedstock for refiners.
In order to facilitate the sale of oil ahead of completion of the pipeline, it is planned that the crude from the first train at MPT will be trucked to the Gujarat coast and then shipped to MRPL and HPCL. Trial trucking runs have been successfully completed on the route from Mangala to the Gujarat coast. Crude sales to IOC will be by injection into their existing pipeline network in Gujarat.
The discussions for further volumes are ongoing.
Resource base including enhanced oil recovery (EOR)
Early application of chemical flooding EOR in the MBA fields is designed to increase the overall recovery from the fields, extend their crude oil production plateau periods, reduce water production and potentially increase the crude oil production.
Cairn India is planning to conduct an EOR pilot trial in the Mangala field as soon as possible after production starts in 2009. The current assessment of the EOR resource base is more than 300 mmbbls of incremental recoverable oil from the MBA fields.
Cairn India is also planning to conduct pilot activities to evaluate the Barmer Hill formation over the Mangala and Aishwariya fields currently estimated to hold around 400 mmbbls of oil in place in tighter reservoir rocks (lower permeabilities). Globally, analogous fields have been developed with expected ultimate recoveries of 7-20% under primary and secondary recovery schemes. Cairn India is planning to conduct pilot tests to evaluate the production potential of the Barmer Hill.
Cairn India has made 25 discoveries in the RJ-ON-90/1 block to date and has established a significant growing resource base in the Barmer basin. The initial focus has been to develop the MBA fields which contain over two billion barrels of oil in place in the Fatehgarh reservoirs, through primary and secondary recovery schemes.
Exploration - RJ-ON-90/1 (Cairn India is the Operator - 70% holding in the Mangala and Bhagyam Development Areas and a 100% holding in the new Kaameshwari West Development Area)
Cairn India continues to see significant potential in the Rajasthan block. The Company is planning further appraisal drilling of up to three wells.
A significant new oil discovery was made through the Raageshwari East 1z well located in the east of the Raageshwari field. This discovery resulted in a more than doubling of the size of the prospective resources in the Raageshwari area and preparatory work is ongoing for the drilling of appraisal wells and further exploration activities. The Declaration of Commerciality (DoC) for the Northern Appraisal Area was approved by the MC, creating the new 822 km² Kaameshwari West Development Area. The Kaameshwari FDP has been submitted to the MC for review and approval.
Cairn India - Producing Assets
The average crude oil price realisation this quarter was USD 60.2/bbl and the average gas price was USD 4.0/mscf resulting in an average price realisation of USD 51.2/boe.
Krishna-Godavari Basin - Eastern India
Ravva (Cairn India 22.5% (Operator))
Average gross production from the Ravva field for Q1 was 44,954 boepd (comprising an average oil production of 36,558 bopd and average gas production of 50.38 mmscfd).
Production at the Ravva field is being sustained through continuous reservoir and well management. Further studies are being conducted to identify additional in place reserves and bypassed oil zones within the field.
Of the three new in-field sub sea pipelines being installed to overcome pipeline capacity bottlenecks, two have been commissioned.
Cambay Basin - Western India
Block CB/OS-2: (Cairn India 40% (Operator))
Average gross production from Block CB/OS-2 for Q1 was 14,506 boepd (comprising an average oil / condensate production of 9,945 bopd and average gas production of 27.37 mmscfd).
As an outcome of the workover activities and upgrading of the crude evacuation facilities, the production from the block has significantly increased.
Cairn India - Exploration - Other Assets
At present, Cairn India has exploration interests in 13 blocks held across India and Sri Lanka nine of which are operated by the Company. These blocks are located in the Krishna-Godavari Basin, the Palar Basin, Kerala Konkan Basin, Cambay Basin, Gujarat Saurashtra Basin, Barmer Basin, Indus Basin, Vindhyan Basin, Ganga Valley and the Mannar Basin offshore Sri Lanka.
Exploration and appraisal activity in 2009 included the drilling of one well in Block RJ-ONN-2003/1 operated by Eni. This well was plugged and abandoned as a dry hole in May 2009.
The 2009-10 exploration programme includes the drilling of 6-10 wells. Additionally, the Company has begun preliminary work for 3D seismic surveys in the Mannar (Sri Lanka) and Palar basins. The new seismic acquisition positions Cairn India for an extensive drilling programme in 2010-11.
CORPORATE
The Board of Directors and shareholders (through a postal ballot) had earlier approved moving the registered office from Mumbai, Maharashtra to Rajasthan, subject to approval from the Company Law Board. At today's board meeting, it was decided to continue with the registered office in Mumbai.
Cairn India Limited
Registered Office: 101, West View, Veer Savarkar Marg, Prabhadevi, Mumbai - 400025
Corporate Office: 3rd & 4th Floors, Vipul Plaza, Sun City, Sector-54, Gurgaon - 122002
UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2009
(All amounts are in lakhs of Indian rupees, unless otherwise stated)
|
Sr. No. |
Particulars |
Quarter ended 30-June-09 |
Quarter ended 30-June-08 |
Year-to-date Previous Financial Period ended 30-June-08 (6 months) |
Previous Financial Period ended 31-Mar-09 (15 months) |
|
Unaudited |
Unaudited |
Unaudited |
Audited |
||
|
1 |
a) Income from operations |
20,495 |
40,363 |
71,947 |
143,267 |
|
|
b) Other operating income |
- |
- |
- |
- |
|
2 |
Expenditure |
|
|
|
|
|
|
a) (Increase)/Decrease in stock-in-trade |
(1,550) |
1,802 |
1,474 |
2,223 |
|
|
b) Operating expenses |
4,401 |
5,014 |
9,678 |
21,297 |
|
|
c) Employees cost |
2,152 |
2,919 |
5,441 |
11,452 |
|
|
d) Depreciation, depletion & amortization |
4,133 |
6,469 |
12,793 |
26,980 |
|
|
e) Share issue expenses |
- |
- |
- |
2,084 |
|
|
f) Administration cost |
2,280 |
3,414 |
5,340 |
15,235 |
|
|
g) Exploration cost |
3,088 |
4,276 |
6,025 |
16,839 |
|
|
h) Foreign exchange fluctuation |
- |
- |
- |
- |
|
|
i) Total |
14,504 |
23,894 |
40,751 |
96,110 |
|
3 |
Profit/(Loss) from Operations before Other Income, Interest & Exceptional Items (1-2) |
5,991 |
16,469 |
31,196 |
47,157 |
|
4 |
Other Income |
12,897 |
5,780 |
7,767 |
50,716 |
|
5 |
Profit/(Loss) before Interest & Exceptional Items (3+4) |
18,888 |
22,249 |
38,963 |
97,873 |
|
6 |
Interest and finance cost |
73 |
287 |
320 |
641 |
|
7 |
Profit/(Loss) after Interest but before Exceptional Items (5-6) |
18,815 |
21,962 |
38,643 |
97,232 |
|
8 |
Exceptional Items |
(16,371) |
- |
1,557 |
1,557 |
|
9 |
Profit/(Loss) from Ordinary Activities before tax (7+8) |
2,444 |
21,962 |
40,200 |
98,789 |
|
10 |
Tax expense |
|
|
|
|
|
|
a) Current tax |
1,386 |
1,461 |
2,426 |
11,108 |
|
|
b) Deferred tax |
(4,184) |
4,683 |
10,224 |
6,234 |
|
|
c) Fringe benefit tax |
698 |
1,960 |
2,049 |
1,102 |
|
|
d) Total |
(2,100) |
8,104 |
14,699 |
18,444 |
|
11 |
Net Profit/(Loss) from Ordinary Activities after tax (9-10) |
4,544 |
13,858 |
25,501 |
80,345 |
|
12 |
Extraordinary items (net of tax expense) |
- |
- |
- |
- |
|
13 |
Net Profit/(Loss) for the period (11-12) |
4,544 |
13,858 |
25,501 |
80,345 |
|
Sr. No. |
Particulars |
Quarter ended 30-June-09 |
Quarter ended 30-June-08 |
Year-to-date Previous Financial Period ended 30-June-08 (6 months) |
Previous Financial Period ended 31-Mar-09 (15 months) |
|
Unaudited |
Unaudited |
Unaudited |
Audited |
||
|
14 |
Paid-up Equity Share Capital (Face value of Rs.10 each) |
189,667 |
189,443 |
189,443 |
189,667 |
|
15 |
Reserves excluding Revaluation Reserves |
|
|
|
3,086,676 |
|
16 |
Earning/(Loss) per share in rupees (not annualized) |
|
|
|
|
|
|
a) Basic earnings/(loss) per share |
0.24 |
0.74 |
1.40 |
4.31 |
|
|
b) Diluted earnings/(loss) per share |
0.24 |
0.74 |
1.39 |
4.28 |
|
17 |
Public Shareholding |
|
|
|
|
|
|
- Number of shares |
669,824,025 |
667,585,947 |
667,585,947 |
669,824,025 |
|
|
- Percentage of shareholding |
35.32% |
35.24% |
35.24% |
35.32% |
|
18 |
Promoters and Promoter Group Shareholding |
|
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
|
-Number of shares |
- |
- |
- |
- |
|
|
-Percentage of shares (as a % of the total share shareholding of promoter and promoter group) |
- |
- |
- |
- |
|
|
-Percentage of shares (as a % of the total share capital of the Company) |
- |
- |
- |
- |
|
|
b) Non-encumbered |
|
|
|
|
|
|
-Number of shares |
1,226,843,791 |
1,226,843,791 |
1,226,843,791 |
1,226,843,791 |
|
|
-Percentage of shares (as a % of the total share shareholding of promoter and promoter group) |
100% |
100% |
100% |
100% |
|
|
-Percentage of shares (as a % of the total share capital of the Company) |
64.68% |
64.76% |
64.76% |
64.68% |
Notes:-
1. The above unaudited financial results for the current quarter have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at its meeting held on 29th July 2009 and have been subjected to a limited review by the auditors of the Company.
2. The Company had changed its financial year from Jan-Dec to Apr-Mar. Consequently, the previous financial year was for fifteen months period from 1st January 2008 to 31st March 2009. Corresponding year-to-date period in the previous year consists of six months from 1st January 2008 to 30th June 2008 due to change in financial year.
3. The Company and its subsidiaries operate in only one segment i.e. 'Oil and Gas Operations'.
4. Employee costs for the current quarter include stock option charge of INR 763 lakhs computed under the Intrinsic Value Method. The said charge would have been INR 1,757 lakhs, if computed under the Fair Value (Black Scholes) Method. Following is the summary of options existing, granted, exercised and cancelled during the current quarter-
|
|
Particulars |
Equity-settled Employee Stock Option Schemes |
Cash-settled Employee Stock Option Schemes |
|
(a) |
Options outstanding at the beginning of the quarter |
16,352,417 |
1,147,415 |
|
(b) |
New options granted during the quarter |
Nil |
Nil |
|
(c) |
Options exercised and shares allotted during the quarter |
Nil |
Nil |
|
(d) |
Options cancelled during the quarter |
Nil |
Nil |
|
(e) |
Options outstanding at the end of the quarter |
16,352,417 |
1,147,415 |
5. Exploration costs include costs pertaining to geological/geophysical studies, seismic studies, other surveys and unsuccessful wells. These costs have been charged to the profit and loss account as per the provisions of the Successful Efforts Method of accounting for acquisition, exploration and development costs prescribed under the Guidance Note on Accounting for Oil and Gas Producing Activities, issued by the Institute of Chartered Accountants of India.
6. Other income for the quarter includes income from investments of INR 5,716 lakhs and foreign exchange fluctuation of INR 7,181 lakhs, representing the net gain arising on settlement and translation of foreign currency monetary items at the rate prevailing at the end of the reporting date and the cost arising on the USD/INR options (taken for hedging the foreign currency risks of the group) settled, cancelled or marked-to-market as at 30th June 2009.
7. The current tax and deferred tax provisions have been computed on the basis of the standalone financial statements of the Company's subsidiaries, i.e. not based on the consolidated financial statements of Cairn India Limited and its subsidiaries. The fringe benefit tax includes the provision made on employee stock options, which is worked out on the basis of number of options expected to be exercised and the share price prevailing on the reporting date.
8. The Finance Bill (No.2) 2009 has following impacts on the above results, which have not been given effect in the current quarter, as the said bill was introduced subsequent to 30th June 2009-
a) Current tax charge for the quarter would have been higher by INR 1,150 lakhs due to changes in Minimum Alternate Tax (MAT) provisions and by INR 2,415 lakhs relating to earlier periods due to inclusion of the definition of the term 'undertaking' under Section 80-IB(9) of the Income Tax Act, 1961. Further, MAT aggregating to INR 3,653 lakhs (including INR 2,687 lakhs for earlier periods) would now be available for claiming tax credit in future due to the said amendments.
b) Deferred tax credit would have been lower by INR 826 lakhs (including INR 213 lakhs for earlier periods) due to inclusion of the definition of the term 'undertaking' as mentioned above.
c) Fringe Benefit Tax liability would have been lower by INR 1,750 lakhs (including INR 1,052 lakhs for earlier periods), as the said tax is proposed to be abolished.
Further, the Finance Bill (No.2) 2009 has introduced tax holiday on commercial production of gas from NELP-VIII blocks. However, the availability of tax holiday on gas produced from pre NELP-VIII blocks is still a matter of judicial interpretation. The Company had filed a writ petition before the Honorable Gujarat High Court seeking clarification on the availability of tax holiday on production of gas. The Company believes that said amendment does not impact the status of the writ petition. The potential tax liability including interest aggregates to INR 22,100 lakhs if the said writ petition is unsuccessful.
9. The exceptional item in the current quarter represents net amount deducted by the customers and remitted to Government of India, pursuant to its directive to the customers to recover profit petroleum of earlier years in relation to ONGC carry case. The matter is currently under appeal at a higher court in Malaysia. The Company has made a provision against deductions relating to sales made till 30th June 2009 on a conservative basis.
10. Previous quarter / year figures have been regrouped / rearranged wherever necessary to confirm to the current quarter's presentation.
|
|
For and on behalf of the Board of Directors |
|
|
|
|
Place: Edinburgh |
Rahul Dhir |
|
Date: 29th July 2009 |
Managing Director and Chief Executive Officer |
Cairn India Limited
Registered Office: 101, West View, Veer Savarkar Marg, Prabhadevi, Mumbai - 400025
Corporate Office: 3rd & 4th Floors, Vipul Plaza, Sun City, Sector-54, Gurgaon - 122002
UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2009
(All amounts are in lakhs of Indian rupees, unless otherwise stated)
|
Sr. No. |
Particulars |
Quarter ended 30-June-09 |
Quarter ended 30-June-08 |
Year-to-date Previous Financial Period ended 30-June-08 (6 months) |
Previous Financial Period ended 31-Mar-09 (15 months) |
|
Unaudited |
Unaudited |
Unaudited |
Audited |
||
|
1 |
a) Income from operations |
25 |
97 |
186 |
373 |
|
|
b) Other operating income |
- |
- |
- |
- |
|
2 |
Expenditure |
|
|
|
|
|
|
a) (Increase)/Decrease in stock-in-trade |
- |
- |
- |
- |
|
|
b) Operating expenses |
257 |
2 |
363 |
362 |
|
|
c) Employees cost |
547 |
662 |
2,135 |
2,125 |
|
|
d) Depreciation, depletion & amortization |
1 |
- |
- |
4 |
|
|
e) Legal & professional charges |
237 |
880 |
1,262 |
2,823 |
|
|
f) Share issue expenses |
- |
- |
- |
2,084 |
|
|
g) Administration cost |
195 |
241 |
415 |
1,222 |
|
|
h) Exploration cost |
1,356 |
2,966 |
3,710 |
8,136 |
|
|
i) Foreign exchange fluctuation |
- |
407 |
407 |
1,806 |
|
|
j) Total |
2,593 |
5,158 |
8,292 |
18,562 |
|
3 |
Profit/(Loss) from Operations before Other Income, Interest & Exceptional Items (1-2) |
(2,568) |
(5,061) |
(8,106) |
(18,189) |
|
4 |
Other Income |
5,736 |
2,161 |
2,781 |
27,873 |
|
5 |
Profit/(Loss) before Interest & Exceptional Items (3+4) |
3,168 |
(2,900) |
(5,325) |
9,684 |
|
6 |
Interest and finance cost |
2 |
- |
- |
34 |
|
7 |
Profit/(Loss) after Interest but before Exceptional Items (5-6) |
3,166 |
(2,900) |
(5,325) |
9,650 |
|
8 |
Exceptional Items |
- |
- |
1,557 |
1,557 |
|
9 |
Profit/(Loss) from Ordinary Activities before tax (7+8) |
3,166 |
(2,900) |
(3,768) |
11,207 |
|
10 |
Tax expense |
|
|
|
|
|
|
a) Current tax |
1,020 |
- |
- |
5,438 |
|
|
b) Deferred tax |
- |
- |
- |
- |
|
|
c) Fringe benefit tax |
287 |
1,768 |
1,774 |
345 |
|
|
d) Total |
1,307 |
1,768 |
1,774 |
5,783 |
|
11 |
Net Profit/(Loss) from Ordinary Activities after tax (9-10) |
1,859 |
(4,668) |
(5,542) |
5,424 |
|
12 |
Extraordinary items (net of tax expense) |
- |
- |
- |
- |
|
13 |
Net Profit/(Loss) for the period (11-12) |
1,859 |
(4,668) |
(5,542) |
5,424 |
|
Sr. No. |
Particulars |
Quarter ended 30-June-09 |
Quarter ended 30-June-08 |
Year-to-date Previous Financial Period ended 30-June-08 (6 months) |
Previous Financial Period ended 31-Mar-09 (15 months) |
|
Unaudited |
Unaudited |
Unaudited |
Audited |
||
|
14 |
Paid-up Equity Share Capital (Face value of Rs.10 each) |
189,667 |
189,443 |
189,443 |
189,667 |
|
15 |
Reserves excluding Revaluation Reserves |
|
|
|
3,005,523 |
|
16 |
Earning/(Loss) per share in rupees (not annualized) |
|
|
|
|
|
|
a) Basic earnings/(loss) per share |
0.10 |
(0.25) |
(0.30) |
0.29 |
|
|
b) Diluted earnings/(loss) per share |
0.10 |
(0.25) |
(0.30) |
0.29 |
|
17 |
Public Shareholding |
|
|
|
|
|
|
- Number of shares |
669,824,025 |
667,585,947 |
667,585,947 |
669,824,025 |
|
|
- Percentage of shareholding |
35.32% |
35.24% |
35.24% |
35.32% |
|
18 |
Promoters and Promoter Group Shareholding |
|
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
|
-Number of shares |
- |
- |
- |
- |
|
|
-Percentage of shares (as a % of the total share shareholding of promoter and promoter group) |
- |
- |
- |
- |
|
|
-Percentage of shares (as a % of the total share capital of the Company) |
- |
- |
- |
- |
|
|
b) Non-encumbered |
|
|
|
|
|
|
-Number of shares |
1,226,843,791 |
1,226,843,791 |
1,226,843,791 |
1,226,843,791 |
|
|
-Percentage of shares (as a % of the total share shareholding of promoter and promoter group) |
100% |
100% |
100% |
100% |
|
|
-Percentage of shares (as a % of the total share capital of the Company) |
64.68% |
64.76% |
64.76% |
64.68% |
Notes:-
1. The above unaudited financial results for the current quarter have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at its meeting held on 29th July 2009.
2. The Company had changed its financial year from Jan-Dec to Apr-Mar. Consequently, the previous financial year was for fifteen months period from 1st January 2008 to 31st March 2009. Corresponding year-to-date period in the previous year consists of six months from 1st January 2008 to 30th June 2008 due to change in financial year.
3. The Company operates in only one segment i.e. 'Oil and Gas Operations'
4. Employee costs for the current quarter include stock option charge of INR 180 lakhs computed under the Intrinsic Value Method. The said charge would have been INR 1,101 lakhs, if computed under the Fair Value (Black Scholes) Method. Following is the summary of options existing, granted, exercised and cancelled during the current quarter-
|
|
Particulars |
Equity-settled Employee Stock Option Schemes |
|
(a) |
Options outstanding at the beginning of the quarter |
16,352,417 |
|
(b) |
New options granted during the quarter |
Nil |
|
(c) |
Options exercised and shares allotted during the quarter |
Nil |
|
(d) |
Options cancelled during the quarter |
Nil |
|
(e) |
Options outstanding at the end of the quarter |
16,352,417 |
5. Exploration costs include costs pertaining to geological/geophysical studies, seismic studies, other surveys and unsuccessful wells. These costs have been charged to the profit and loss account as per the provisions of the Successful Efforts Method of accounting for acquisition, exploration and development costs prescribed under the Guidance Note on Accounting for Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.
6. Other income for the quarter includes income from investments of INR 5,367 lakhs and foreign exchange fluctuation of INR 369 lakhs, representing the net gain arising on settlement and translation of foreign currency monetary items at the rate prevailing at the end of the reporting date.
7. The fringe benefit tax includes the provision made on employee stock options, which is worked out on the basis of options outstanding and the share price prevailing on the reporting date.
8. The number of investors' complaints received and disposed of during the quarter ended 30th June 2009 were as follows-
|
(a) |
Pending at the beginning of the quarter |
Nil |
|
(b) |
Received during the period |
22 |
|
(c) |
Disposed of during the period |
22 |
|
(d) |
Pending at the end of the quarter |
Nil |
9. As on 30th June 2009, the Company and its subsidiaries together have utilized INR 844,402 lakhs for the purposes listed in the IPO prospectus, as against the projected utilization of Rs.882,489 lakhs. The funds utilized till 30th June 2009 were as follows-
|
|
Particulars |
INR in lakhs |
|
(a) |
Acquisition of shares of Cairn India Holdings Limited from Cairn UK Holdings Limited |
595,808 |
|
(b) |
Exploration and Development expenses |
230,298 |
|
(c) |
General corporate purposes |
2,300 |
|
(d) |
Issue expenses |
15,996 |
|
|
Total |
844,402 |
10. The fringe benefit tax (FBT) liability aggregating to INR 1,169 lakhs (including INR 882 lakhs for earlier periods) will be reversed after enactment of the Finance Bill (No.2) 2009, which proposes to abolish FBT. No impact has been given in the current quarter as the said bill was introduced subsequent to 30th June 2009.
11. Previous quarter / year figures have been regrouped / rearranged wherever necessary to confirm to the current quarter's presentation.
|
|
For and on behalf of the Board of Directors |
|
|
|
|
Place: Edinburgh |
Rahul Dhir |
|
Date: 29th July 2009 |
Managing Director and Chief Executive Officer |
Enquiries to:
Analysts/Investors
Anurag Mantri, Group Financial Controller +919810301321
Media
Manu Kapoor, Director, Corporate Affairs +919717890260
About Cairn India Limited
-
'Cairn India' where referred to in the release means Cairn India Limited and/or its subsidiaries, as appropriate.
-
Cairn Lanka (Private) Limited, is a wholly owned subsidiary of Cairn India that holds a 100% participating interest in the Mannar block.
-
'Cairn' where referred to in this release means Cairn Energy PLC and/or its subsidiaries (including Cairn India), as appropriate.
-
Cairn India is headquartered in Gurgaon on the outskirts of Delhi, with operational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan.
-
On 9 January 2007, Cairn successfully concluded the flotation of its Indian business with the commencement of trading of Cairn India Limited on the Bombay Stock Exchange and the National Stock Exchange of India. Cairn Energy PLC currently holds a 65% shareholding in Cairn India Limited.
-
Cairn India holds material exploration and production positions in 13 blocks in west India and east India along with new exploration rights elsewhere in India and Sri Lanka.
-
This focus on India has already resulted in a significant number of oil and gas discoveries. In particular, Cairn made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. More than 20 discoveries have been made in Rajasthan block RJ-ON-90/1.
-
In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a Production Sharing Contract (PSC) signed on 15 May 1995. The main Development Area (1,858 km2), which includes Mangala, Aishwariya, Saraswati and Raageshwari is shared between Cairn India and ONGC, with Cairn India holding 70% and ONGC having exercised their back in right for 30%. A further Development Area (430 km2), including the Bhagyam and Shakti fields, is also shared between Cairn India and ONGC in the same proportion.
-
The Operating Committee for Block RJ-ON-90/1 consists of Cairn India and ONGC.
-
India currently imports more than 2,000,000 barrels of oil per day (bopd). It produces approximately 700,000 bopd itself of which approximately 50,000 bopd comes from the Cairn India operated Ravva field on the east coast of IndiaGlossary
- For further information on Cairn India Limited see www.cairnindia.com
Glossary
Corporate
|
Cairn India/CIL |
Cairn India Limited and/or its subsidiaries as appropriate |
|
Company |
Cairn India Limited |
|
CY |
Calendar Year |
|
DoC |
Declaration of Commerciality |
|
JV |
Joint Venture |
|
MBA |
Mangala, Bhagyam and Aishwariya |
|
MPT |
Mangala Processing Terminal |
|
MRPL |
Mangalore Refinery and Petrochemicals Limited, (subsidiary of ONGC) |
|
IOC |
Indian Oil Corporation |
|
HPCL |
Hindustan Petroleum Corporation Limited |
|
E&P |
exploration and production |
|
GoI |
Government of India |
|
Group |
the Company and its subsidiaries |
|
MC |
Management Committee |
|
ONGC |
Oil and Natural Gas Corporation Limited |
|
OC |
Operating Committee |
Technical
|
2P |
proven plus probable |
|
3P |
proven plus probable and possible |
|
2D/3D |
two dimensional/three dimensional |
|
Boe |
barrel(s) of oil equivalent |
|
boepd |
barrels of oil equivalent per day |
|
bopd |
barrels of oil per day |
|
Bscf |
billion standard cubic feet of gas |
|
EOR |
enhanced oil recovery |
|
FDP |
field development plan |
|
Mmboe |
million barrels of oil equivalent |
|
mmscfd |
million standard cubic feet of gas per day |
|
Mmt |
Million metric tonne |
|
PSC |
Production Sharing Contract |
The Fatehgarh is the name given to the primary reservoir rock of the Northern Rajasthan fields of Mangala, Aishwariya and Bhagyam.
The Barmer Hill is a lower permeability reservoir which overlies the Fatehgarh.
The Dharvi Dungar forms the secondary reservoirs in the Guda field and is the reservoir rock encountered in the recent Kameshwari West discoveries.
The Thumbli forms the youngest reservoirs encountered in the basin. The Thumbli is the primary reservoir for the Raageshwari field.
These materials contain forward-looking statements regarding Cairn India, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward-looking statements are based on our management's assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are, by their nature, subject to significant risks and uncertainties and actual results, performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from expectations include, but are not limited to, regulatory changes, future levels of industry product supply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and use of technology, acts of competitors and other changes to business conditions. Cairn India undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn India's expectations with regard thereto or any change in circumstances or events after the date hereof. Unless otherwise stated the reserves and resource numbers within this presentation represent the views of Cairn India and do not represent the views of any other party, including the Government of India, the Directorate General of Hydrocarbons or any of Cairn India's joint venture partners.
This information is provided by RNS
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