Cairn India on Friday reported its biggest quarterly loss of Rs 10,948 crore for the fourth quarter ending March 31, 2016 as it took an impairment charge of Rs 11,674 crore on goodwill and non-producing oil and gas assets due to drop in international oil prices.
“The impairment of Rs 11,674 crore largely reflects the lower crude price, prevailing discount of Rajasthan crude as well as adverse long term impact of revised Cess,” Cairn India said in a release to Bombay Stock Exchange.
Its revenues fell 36 per cent annually to Rs 1,717 crore on account of lower oil prices. Cairn India realized an average of $27.8 per barrel for the oil it produced in the fourth quarter compared to $48.6 per barrel in the year ago quarter.
Cairn India had reported a net loss of Rs 240 crore on revenues of Rs 2,677 crore in the January-March quarter of FY2015.
Its production fell 8 per cent to 206,170 barrels of oil and oil equivalent gas in the fourth quarter of last fiscal. Production from its Rajasthan field, which contributes nearly 80 per cent to its total production fell 5 per cent to 164,826 barrels.
“The Cairn team has delivered a resilient performance in a challenging year. Drive for cost efficiency and rationalization of capital investment have aided free cash generation despite crude prices plummeting to a 12 year low,” Mayank Ashar, managing director and CEO of Cairn India, said commenting on the earnings.
Cairn India shares closed 0.7 per cent higher at Rs 151.65 apiece on Friday compared to 0.16 per cent fall in the broader Sensex.