Cairn India profit jumps to Rs 1,585 cr

NEW DELHI: Cairn India has reported a sharp rise in net profit as its main producing field operated at peak capacity, and its parent company said the $9.6-billion deal to sell a controlling stake in its Indian arm to Vedanta Resources was making progress.

“The Vedanta transaction continues to progress as we work with the Government of India in a consensual manner to secure the necessary consents and approvals for completion,” Cairn Energy CEO Bill Gammell said in a statement.

Cairn’s statement comes a day after petroleum secretary S Sundareshan said the company needed government approval for transfer of all oil and gas assets, including the block in Rajasthan from where the company pumps 1,25,000 barrels per day.

Consolidated net profit in the quarter jumped to Rs 1,585.1 crore from Rs 469.5 crore in the same quarter last year, while revenue leapt to Rs 2,686.4 crore from Rs 229.8 crore a year ago.

Profit jumped as Cairn’s oil field was ramped up to the approved peak production and sales were facilitated by the construction of a pipeline from the field to the Gujarat coast.

“The first full quarter of sales through the pipeline to refineries has generated significant revenues from the Mangala field in Rajasthan,” Rahul Dhir, managing director and chief executive officer, Cairn India said in a statement.