CAIRN INDIA = RESULTS = FOR Q3 FY 2011 = QTR ENDING DECEMBER 2010 = EXCELLENT PROGRESS IN OPERATIONS AND FINANCIALS = ONGC & CAIRN NEED BETTER CO-OPERATION

Cairn India Limited

NSE Symbol   CAIRN

CAIRN INDIA has declared excellent (CONSOLIDATED) results for the third quarter ending December 2010.

NET SALES : is Rs.3096 cr – up by 15.26% from Q2 FY 11; up by 268.36% from Q1 FY 11; up by 346.93% from Q4 FY 10; and up by 524.96% from Q3 FY 10.

Total Expenditure : is Rs. 842 cr – down by 1.4% from Q2 FY 11; up by 94.48% from Q1 FY11; up by 73.52% from Q4 FY10; and up by 278.82% from Q3 FY 10.

PROFIT FROM OPERATIONS : is  Rs.2255 cr – up by 23.02% from Q2 FY11; up by 452.88% from Q1 FY11; up by 985.21% from Q4 FY 10; and up by 725.1% from Q3 FY 10.

CONSOLIDATED  NET PROFIT : is Rs.2010 cr – up by 26.82% from Q2 FY 11; up by 614.3% from Q1 FY 11; up by 719.82% from Q4 FY 10; and up by 590.86% from Q3 FY 10.

Basic EPS(in Rs.) on a Face Value of Rs.10 is Rs.10.59 compared to Rs.8.35 in Q2 FY 11; Rs.1.48 in in Q1 FY 11; Rs.1.29 in Q4 FY 10; and Rs.1.53 in Q3 FY 10.

The Results are obviously excellent and indicate great progress in all segments of operations and sales.

However, there is a blame game between CAIRN and ONGC over delays in approving critical issues concerning Barmer oilfield operation – especially in the matter of holding periodical meetings for decisions. Oil Production is a very critical factor in the development of India.

CAIRN  has been succeeding eminently in the same. It must be allowed to succeed faster. Government should clear up all RED TAPE  wherever it lies. In fact, Government should push up the targets for CAIRN and encourage it to achieve them. The future of Energy security of India lies with Efficient private sector entrepreneurs like RIL, CAIRN etc and not with Public sector Units whose methods and success rate are much less than that of Efficient private sector Units.

Government should do – whatever it takes to ensure ENERGY SECURITY OF INDIA, as fast as possible, and not be constrained by its loyalty to its own Public sector Units.

To the extent feasible, Public sector Units must also be made to run FAST and achieve bigger goals.

CONSOLIDATED

RESULTS TABLE:

CAIRN-CONSOL	Q3 FY 11	Q2 FY 11	Q1 FY 11	Q4 FY 10	Q3 FY 10
Net Sales	309644	268642	84060	69283	49546
DIF %1	3096	15.26	268.36	346.93	524.96
Incr./Dec. in SIT/WIP	493	2682	-6699	7001	-6520
Employees Cost	3152	2996	1891	2683	4069
Depreciation	28706	27561	16595	3816	2997
Other Expenditure	51818	52125	31491	35006	21673
Total Expenditure	84169	85364	43278	48506	22219
DIF %2	842	-1.4	94.48	73.52	278.82
Profit from Operations	225475	183278	40782	20777	27327
DIF %3	2255	23.02	452.88	985.21	725.1
Other Income	3416	2820	2807	8791	9985
Interest	7422	12809	4926	188	2600
Profit before tax	221469	173289	38663	29380	34712
Tax Expense	20457	14781	10522	4861	5616
Net Profit after tax	201012	158508	28141	24519	29096
Net Profit	201012	158508	28141	24519	29096
Consol. Net Profit	201012	158508	28141	24519	29096
DIF %4	2010	26.82	614.3	719.82	590.86
Face Value (in Rs.)	10	10	10	10	10
Paid-up Equity	190074	189745	189735	189697	189667
Basic EPS(in Rs.)	10.59	8.35	1.48	1.29	1.53
Diluted EPS(in Rs.)	10.53	8.31	1.48	1.29	1.53
Public Holding (%)	37.75	37.64	37.64	37.62	37.61

Cairn India Limited

Third Quarter Financial Results

for the period ended 31 December, 2010

OPERATIONAL HIGHLIGHTS

 Working Interest Sales of more than 100,000 barrels of oil equivalent per day (boepd) in Q3 FY 2010-11

 Gross operated production at 174,282 boepd; Q3 FY 2009-10 (66,843 boepd); up by 5% QoQ basis

 Won nine safety awards in the 24th Mine Safety Awards for Rajasthan Operations organized under the aegis of the Directorate General of Mines Safety (DGMS), Rajasthan

Rajasthan

 First full quarter of Mangala approved plateau production at ~125,000 barrels of oil per day (bopd); completed more than 15 months of successful Mangala production with gross field revenues in excess of USD 2 billion

 Mangala development drilling progresses as planned; to date 125 wells are drilled of which 84 are complete and 55 are producing

 Total sales of more than 27.5 million barrels (mmbbls) of Mangala crude as at 31 December, 2010; safe delivery in excess of 11 mmbbls in Q3 FY 2010-11

 Bhagyam development drilling commenced; 14 wells drilled to date, expected to commence production in H2 CY 2011 and achieve approved plateau rate of 40,000 bopd by end CY 2011

 Mangala Enhanced Oil Recovery (EOR) pilot on track; water injection phase of the pilot is underway

 Construction work on Train Four on track; commissioning expected in H2 CY 2011 to take Mangala Processing Terminal (MPT) nameplate capacity to 205,000 bopd

 Further ramp up in Rajasthan production impacted;

 Mangala reservoir performance and surface facilities ready to support immediate production increase of 25,000 bopd to 150,000 bopd.

 Assessment of higher production potential and design optimisation of Aishwariya field currently underway; plan to commence production in H2 CY 2012, subject to JV and GoI approval

 Construction commenced on the Salaya to Bhogat pipeline extension and the marine facility; expected to be operational in H2 CY 2012 Other Assets

 Ravva infill drilling campaign commenced

 Preparations for Sri Lanka frontier exploration drilling campaign in the SL 2007-01-001 block progressing well; drilling expected to commence in July 2011 

Rahul Dhir, Managing Director and Chief Executive Officer, Cairn India said: “Mangala production has consistently delivered at the currently approved plateau rate of 125,000 bopd. A further production increase to 150,000 bopd remains subject to joint venture and Government of India approval.

All of the processing systems and the pipeline infrastructure have demonstrated safe and efficient operations and we continue to work with the GoI to rebuild the momentum and ensure the national resource in Rajasthan enhances our contribution to our nation’s energy security.”

OTHER FINANCIAL ASPECTS

The Q3 FY 2010-11 average production was 124,861 bopd from Rajasthan compared to 15,430 bopd in Q3 FY 2009-10. The oil price realisation was USD 74.8 per bbl compared to USD 66.1 per bbl in Q3 FY 2009-10.

Cash (net of borrowings) available as on 31 December, 2010 was INR 8,693 million (USD 194 million).

With increasing cash inflows, the company replaced its Rupee facility of INR 40,000 million (USD 850 million) with a lower financing facility of INR 22,500 million (USD 500 million). The new financing facility was raised through INR Unsecured Non-convertible Debentures at competitive commercial terms.

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