Cairn India October-December profit drops 53% to Rs 1,350 crore

MUMBAI: Cairn India reported a decline in profit and sales in the third quarter of FY15 due to a steep fall in crude oil prices and lower production, although the company said it is continuing with plans to invest $3 billion by FY17 to fuel growth. Consolidated net profit plummeted 53% year-on-year to Rs. 350 crore in three months ended December, while revenue fell 30% to Rs 3,504 crore, the Vedanta Group company said in a statement.

"The global crude market is reeling under pressure of adverse market forces. We are committed to cash-generation even in this environment," Mayank Ashar, managing director and chief executive officer, said on a conference call with investors on Thursday. The company's sales realisation declined to $68.1 per barrel of oil equivalent in the quarter from $94.9 a year ago.

"As for our capex, we are focusing on judicious allocation of capital in this challenging environment and focus on our highmargin core fields," Ashar said.

In its core Mangala-BhagyamAishwariya fields, which have 2.2 billion barrels of discovered hydrocarbons, the company said it continues to focus on infrastructure creation and prudent reservoir management. Cairn holds 70% in the Rajasthan block and is the operator, while the remaining stake is held by ONGC .