Cairn India Limited
NSE Symbol CAIRN
Consolidated Financial Results
for the twelve month period ended 31 March, 2011
FINANCIAL HIGHLIGHTS
The consolidated revenue of the company for FY 2010-11 was ` 102,779 million compared to ` 16,230 million in FY 2009-10. The Q4 FY 2010-11 revenue was at `36,545 million up by 18% QoQ.
The consolidated profit after tax (PAT) for FY 2010-11 was ` 63,344 million compared to ` 10,511 million in FY 2009-10. The PAT for Q4 FY 2010-11 was at ` 24,578 million ,up by 22% QoQ.
Cash Flow from Operations in Q4 FY 2010-11 at Rs.26,110 million ; The same for FY 2010-11 is at Rs.67,122 million compared to ` 8,084 million in FY 2009-10.
Net Cash of Rs.29,070 million as on 31 March, 2011
Gross cumulative Rajasthan development capital expenditure at US$ 2,995 million of which US$ 703 million was spent during FY 2010-11
o The Basic earnings per share (EPS) for FY 2010-11 was at ` 33.3 compared to ` 5.5 for FY 2009-10.
o Cash available as at 31 March, 2011 was ` 55,792 million and the loan draw down till 31 March, 2011 was ` 26,722 million.
o During the FY 2010-11, the company replaced its Rupee facility of ` 40,000 million with a lower financing facility of ` 22,500 million . The new financing facility was raised through INR Unsecured Non-convertible Debentures at competitive commercial terms.
o
CAIRN CONSOLIDATED RESULTS TABLE :
| FY 2011 | ||||||
| Net Sales | 1027793 | 162303 | 365447 | 309644 | 268642 | 84060 |
| Total Expenditure | 322583 | 99955 | 109772 | 84169 | 85364 | 43278 |
| Profit from Operation | 705210 | 62348 | 255675 | 225475 | 183278 | 40782 |
| Other Income | 12879 | 40766 | 3836 | 3416 | 2820 | 2807 |
| Profit before tax | 688998 | 101634 | 255577 | 221469 | 173289 | 38663 |
| Tax Expense | 55558 | -3476 | 9798 | 20457 | 14781 | 10522 |
| Net Profit( | 633440 | 105110 | 245779 | 201012 | 158508 | 28141 |
| Face Value (in Rs.) | 10 | 10 | 10 | 10 | 10 | 10 |
| Paid-up Equity | 190192 | 189697 | 190192 | 190074 | 189745 | 189735 |
| Reserves | 3833584 | 3192496 | - | - | - | - |
| Basic EPS (in Rs.) | 33.36 | 5.54 | 12.93 | 10.59 | 8.35 | 1.48 |
| Diluted EPS (in Rs.) | 33.2 | 5.52 | 12.87 | 10.53 | 8.31 | 1.48 |
| Public Shareholding | 37.79 | 37.62 | 37.79 | 37.75 | 37.64 | 37.64 |
OPERATIONAL HIGHLIGHTS
o The average daily gross production for FY 2010-11 was 149,103 boe and average daily working interest production was 83,474 boe. In FY 2009-10, average daily gross production was 69,059 boe and average daily working interest production was 24,957 boe.
o Average Daily Sales (Working Interest) for Q4 FY 2010-11 at 96,417 barrels of oil equivalent (boe); FY 2010-11 at 81,254 boe.
o Average Daily Gross operated production for Q4 FY 2010-11 at 161,194 boe; FY 2010-11 at 149,103 boe
o Maintained low cost operations; field direct opex at US$ 2.3 per barrel (bbl) for FY 2010-11
o Gross crude oil production in excess of 13 million barrels (mmbbls) from operated assets in Q4 FY 2010-11; contributing ~20% of India’s current domestic crude production
o Won the “Golden Peacock Award for Corporate Social Responsibility” for the year 2011
Mangala Field
Current production at 125,000 barrels of oil per day (bopd); cumulative crude sales in excess of 39 mmbbls to Indian refiners
Development drilling progresses as planned; 143 wells drilled to date, 85 completed and 62 producing
Reservoir performance and surface facilities ready to support production of 150,000 bopd, subject to Joint Venture (JV) and Government of India (GoI) approval
Enhanced Oil Recovery (EOR) pilot on track; water injection phase progressing well; preparations ongoing for polymer injection phase
Bhagyam development on track with 30 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
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
Mangala Processing Terminal (MPT) Train Four construction on track; commissioning expected in H2 CY 2011 to take MPT nameplate capacity to 205,000 bopd; Train One, Train Two and Train Three commissioned
Barmer to Salaya pipeline section (~590 km) operational; construction ongoing on the Salaya to Bhogat pipeline section (~80 km) and the marine facility; expected to be operational in H2 CY 2012
Sales arrangements in place for 155,000 bopd with Public Sector Undertaking (PSU) and private Refiners
Other Assets
Ravva infill drilling and workover campaign in progress; four infill wells including one horizontal well drilled and one workover well completed
CB/OS-2 operations achieved more than eight million safe work hours over the last six years
Significant preparatory work for the Sri Lanka frontier exploration drilling campaign in the SL 2007-01-001 block completed; a drillship has been contracted with the expected spud date in August 2011
Rajasthan crude is now transported to a number of refineries in India by the world’s longest continuously heated and insulated pipeline. This infrastructure is strategically important as all the remaining fields and discoveries can be quickly connected to the market.
The first phase of the Rajasthan development including three processing trains, multiple well pads and the pipeline infrastructure is complete. The operations have achieved very high global standards of efficiency with more than 98% uptime.
CAIRN is now focussed on the second phase of the Rajasthan development to reach the currently approved plateau production of 175,000 bopd, which will account for 20% of the country’s crude production.
The construction of the fourth processing train at the MPT is progressing well. Upon completion of this train, the total crude processing capacity at the MPT will be 205,000 bopd.
Work on the pipeline extension from Salaya to Bhogat and the marine facility is ongoing. Completion of this segment will provide the Rajasthan crude access to more than 75% of our nation’s refining capacity.
In addition to the above, the EOR pilot project in Mangala which commenced in early 2010 is progressing as per expectations. The successful implementation of EOR in Rajasthan has the potential to increase recoverable reserves by more than 300 million barrels of oil equivalent (mmboe), and materially extend the duration of the plateau production.
Block Updates:
KG-ONN-2003/1 (Cairn India – 49%, Operator)
The Company has drilled the five commitment wells and completed the Minimum Work Programme (MWP) for this license. There was a hydrocarbon discovery in the Nagayalanka-1z well and a Discovery Notice was issued to the Directorate General of Hydrocarbons (DGH) and subsequently, an appraisal plan was submitted to the GoI, which is currently under review. Based on the well results, the JV opted to enter Phase-II of the Exploration License. An exploration cum appraisal well Nagayalanka SE-1 is planned to be drilled during FY 2011-12.
KG-OSN-2009/3 (Cairn India – 100%, Operator)
This block, covering 1988 km2, was awarded under the NELP VIII licensing round and is located on-trend with recent discoveries in the Krishna-Godavari Basin. The PSC was signed on 30 June, 2010 and the Petroleum Exploration License (PEL) was granted in August 2010. A bathymetry survey covering the license area was completed in May 2011. Work to obtain environmental clearance for a 3D survey, which is planned to start by end 2011, is underway.
KG-DWN-98/2 (Cairn India – 10%, Operator ONGC)
Three appraisal wells were drilled in the Northern Discovery Area in 2010. The Declaration of Commerciality (DoC) was submitted in July 2010, by the operator for the Northern Discovery Area. The Southern Area appraisal period was completed in December 2009, with the DoC submitted to the DGH. The Operator is in discussion with the DGH and GoI to secure an extension in the exploration and appraisal period for the block to carry out additional exploration drilling.
MB-DWN-2009/1 (Cairn India – 100%, Operator)
This block, covering 2961 km2, was awarded under the NELP VIII licensing round and is located in the Mumbai Offshore Basin. The PSC was signed on 30 June, 2010 and the PEL was granted in August 2010. Environmental clearance is being sought to enable acquisition of a 2D survey during Q1 CY 2012. As part of the Company’s west coast exploration strategy, a detailed regional technical study is being undertaken.
KK-DWN-2004/1 (Cairn India – 40%, Operator ONGC)
A 3,840 line km 2D seismic programme was completed in 2009 and following mapping and interpretation of the seismic data, 300 km2 of 3D seismic data has been acquired and processing is in progress. Interpretation of the data is expected to be completed by Q3 CY 2011.
PR-OSN-2004/1 (Cairn India – 35%, Operator)
This block, covering 9,400 km2, is located between discoveries in the Krishna-Godavari and Cauvery basins. Following interpretation of 2D and 3D seismic data, three prospects were identified for drilling to fulfill the MWP. However, post denial of permission to drill in a restricted area defined by the Department of Space, GoI, Force Majeure has been declared by Cairn India and this has been accepted by the DGH,
under the terms of the PSC. Cairn India and the other partners to the PSC are actively pursuing a
resolution of this matter with the GoI.
SL 2007-01-001 (Cairn Lanka – 100%, Operator)
Cairn Lanka (Private) Limited, a wholly owned subsidiary of Cairn India, acquired 1,750 km2 3D seismic data in the frontier Mannar Basin in the December 2009 to January 2010 period. The programme fulfills the minimum work commitment of 1,450 km2 of 3D seismic data acquisition. The Mannar Basin is an under-explored frontier basin. Based on the 3D seismic interpretation, several prospects and leads have been identified and technical work to understand the petroleum system in this basin is ongoing. A drill ship has been contracted and the final preparations for the exploration drilling, planned to commence in August 2011, are ongoing.
OVER ALL SUMMARY :
CAIRN has produced excellent results – operationally and financially. It has also chalked up impressive plans for future.
At the current rate of growth – CAIRN can clock as EPS of over Rs.52 in current year of FY 12. (Q4 FY 11 x 4)
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