Cairn India Rides High on Third Quarter Profit Raise

Cairn India reported its consolidated profit of $82.5 million for the third quarter 2008 compared to $16.6 million in the corresponding period of last year.

The consolidated Profit after providing for tax (including deferred tax and FBT) for Q3 2008 was Rs. 2,933 million (US $67.2 million) and for Q3 2007 was Rs. 232 million (US $5.7 million). 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 profits arising in another.

"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 Rs. 2,169 million (US $49.7 million) for Q3 2008 and for Q3 2007 was Rs. 1,850 million (US $45.6 million).

Cash (net of borrowings) available as at September 30, 2008 was Rs. 31,284 million (US $667.5 million). In addition Cairn India has a loan facility of US $850 million.

The gross production of the operating units was 65,566 barrels of oil equivalent per day (boepd) in Q3 2008 (75,280 boepd in Q3 2007).The working interest production was 17,111 boepd in Q3 2008 (18,871 boepd in Q3 2007).

The consolidated revenue of Cairn India Limited for Q3 for 2008 was Rs. 3,206 million (US $73.5 million) and for Q3 2007 was Rs. 2,658 million (US $65.6 million).

The average oil price realization in Q3 2008 was US $116.3/bbl and for Q3 2007 was US $77.2/bbl. The gas price realization in Q3 2008 was US $4.1/mscf, at par with the corresponding quarter last year.

Average price realization per barrel of oil equivalent (boe) was US $87.3 in Q3 2008 against US $58.4 in Q3 2007.

Rahul Dhir, Chief Executive Officer said, "Cairn India continues to focus efforts on driving forward the Rajasthan upstream and midstream developments and remains on track with adequate financial liquidity to deliver first oil from Mangala in H2 2009."