RNS Number : 1149A
Cairn Energy PLC
29 July 2008
For Immediate Release
29 July 2008
Cairn Energy PLC
Cairn India Limited (Consolidated) Second Quarter Results 2008
The attached release was issued today by Cairn India Limited ('Cairn India') to the Bombay Stock Exchange and the National Stock Exchange of India.
In accordance with its Indian reporting obligations, Cairn India has today issued its Q2 2008 financial results. This financial information is reported in Indian rupees and is prepared under Indian GAAP.
Cairn Energy PLC has a 65% holding in Cairn India. Cairn Energy PLC will release group financial information to the UK market in its 2008 half year results announcement on 26 August 2008. These consolidated results will be reported in US$ under IFRS and include the group's interest in Cairn India.
Key differences between the financials prepared under Indian GAAP to those under IFRS are summarised in the table below:
|
|
IGAAP
|
IFRS
|
|
Accounting policy
|
|
|
|
Exploration write off (income statement)
|
Unsuccessful and other exploration costs (eg seismic) are expensed as incurred
|
Unsuccessful costs are written off; other exploration costs are capitalised pending determination
|
|
Depletion & Decommissioning
|
Based on working interest production and reserves
|
Based on entitlement interest production and reserves
|
|
Foreign exchange
(income statement recognition)
|
Exchange gains and losses recognised on translation of US$ transactions/balances into INR reporting currency
|
No exchange gains or losses recognised on US$ transactions/balances where US$ is also the functional currency
|
|
Share Based Payments
|
Charge based on intrinsic value
|
Charge based on fair value
|
|
Disclosure
|
|
|
|
Operator fees
|
Included in income from operations
|
Included within other operating income
|
|
Interest income
|
Included in other income
|
Included in finance income
|
Group Production
The figures in the table below show group production for Q2 2008 (including 100% of Cairn India's production).
|
Production (boepd)
|
Ravva
|
CB-OS/2
|
Sangu
|
Total
|
|
Gross field
|
55,252
|
15,830
|
9,952
|
81,034
|
|
Working interest
|
12,432
|
6,332
|
3,732
|
22,496
|
|
Entitlement interest
|
5,709
|
4,600
|
2,984
|
13,293
|
The average realised price per boe for Q2 2008 is $81.36.
Group Net Cash
Group net cash at 30th June 2008 was approximately $1,175m (including 100% of Cairn India's net cash balances; US$ 830m).
Group Accounting
Cairn Energy PLC's consolidated accounts include the results of its subsidiary undertakings (including Cairn India) to the balance sheet date. The 35% interest in Cairn India held by other shareholders is reflected as a minority interest adjustment.
For Immediate Release 29 July 2008
Cairn India Limited (Consolidated) Second Quarter Results 2008
The following commentary is provided in respect of the unaudited financial results and operational achievements of Cairn India Limited and its subsidiary companies (referred to as “Cairn India”) during the second quarter of 2008.
OPERATIONAL
· Rajasthan Upstream development underway and on track for first commercial production H2 2009
· Larsen and Toubro Limited (L&T) has started construction in Gujarat of the export crude oil insulated pipeline, gas pipeline and associated facilities from Barmer, Rajasthan to the Gujarat coast
· Rigs secured for development and exploration drilling in H2 2008
· New acreage in Sri Lanka
· Bids submitted for NELP VII acreage in India
FINANCIAL
The gross production of the operating units was 71,082 boepd (barrels of oil equivalent per day) in Q2 2008 (77,392 boepd in Q2 2007) and the working interest production was 18,764 boepd in Q2 2008 (19,775 boepd in Q2 2007).
“Cash flow from operations”, worked out as profit after tax prior to non-cash expenses (non-cash employee cost, depreciation, depletion, amortisation and deferred tax) and exploration cost, was Rupees (Rs). 2,780 million (US$ 66.7 million) for Q2 2008 as compared with Rs. 2,234 million (US$ 54.1 million) for Q2 2007.
Cash (net of borrowings) available as at 30 June 2008 was Rs. 35,287 million (US$ 822.7 million).
The consolidated revenue of Cairn India Limited and its subsidiaries for Q2 2008 was Rs. 4,036 million (US$ 96.9 million) as compared with Rs. 2,433 million (US$ 59 million) for Q2 2007.
The average oil price realisation in Q2 2008 was US$ 125.9/bbl and for Q2 2007 was US $ 69.6/bbl. The gas price realisation in Q2 2008 was US$ 4.3 /mscf and for Q2 2007 was 4.3/mscf.
Average price realisation per boe was US$ 95.2 in Q2 2008 and for Q2 2007 was US$ 50.4.
The consolidated Profit before tax for Q2 2008 was Rs.2,196 million (US$ 52.7 million) as compared with a loss of Rs. 312 million (US$ 7.6 million) for Q2 2007.
The consolidated Profit after provision for tax (including deferred tax and FBT) for Q2 2008 was Rs.1,385.8 million (US$ 33.3 million) as compared with a loss of Rs. 714.4 million (US$ 17.3 million) for Q2 2007.
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 profit arising in another.
Amounts shown in US$ are converted based on an average exchange rate for the Q2 2008 of 41.65 for revenue items and at the closing exchange rate as on 30th June 2008 of 42.89 in respect of cash balance (average rate of Q2 2007 was 41.26)
Rahul Dhir, Chief Executive Officer said:
“The construction of the Rajasthan project is now well underway to provide much needed additional domestic crude supplies in the second half of 2009.
The development of both the pipeline and its associated operations along with the processing facilities at Mangala are on track and all the major contracts for vital equipment have been placed in competitive market conditions.
In addition Cairn India continues to source new acreage to help build future growth opportunities.”
OPERATIONAL REVIEW
Gross operated production in India for the second quarter of 2008 was 71,082 boepd
(18,764 working interest boepd).
RAJASTHAN BASIN- North West India
Block RJ-ON-90/1
Development - Upstream (Cairn India 70% (Operator); ONGC 30%)
.
Oil field development work at the Cairn India’s world class discovery in Rajasthan is in full flow. The integrated upstream and midstream development is on course to produce first oil from Mangala in the second half of 2009.
Development - Midstream (Cairn India 70% (Operator); ONGC 30%)
Cairn India is confident that it will be able to deliver first oil from Mangala by H2 2009. In keeping with the H2 2009 schedule, all major contracts works and construction have been awarded in Rajasthan, and long lead time items have been either ordered or procured.
L&T are well advanced with the detailed engineering and procurement and construction has commenced on the 24” Insulated Crude Oil Pipeline, 8” Gas Pipeline and above ground installations (AGI).
The Engineering Procurement Contract for the Viramgam Terminal has been awarded to Indian Oil Tanking Limited after the completion of the initial Land Development works by Janak Construction Limited.
Jindal SAW Ltd in association with Perma-pipe Middle East FZE has been awarded the supply contract for the 24' insulated linepipe and 8' linepipe with three layer polyethylene coating. After design and installation of a completely bespoke insulation plant as an extension to the existing pipe mill in Mundra, Gujarat, the fully insulated pipes are now available for use in the pipeline construction.
32MW of electrical power is required for the heating system along the pipeline in the form of single 1MW gas engine units and GE Jenbacher in Austria have been awarded the full supply contract. The first units have recently undergone functioned load testing in Austria.
Obtaining access to the land on which the pipeline will be built is well advanced under the RoU process in Gujarat and Rajasthan. The land for the first 25 heating stations (starting from Barmer) and the Viramgam Terminal has been acquired through direct negotiation with land owners and construction at these locations has started.
The GoI communication of 30th April 2008 accorded their consent to shift the delivery point from the outlet flange of the crude oil processing facility in Barmer to the Gujarat Coast.
The proposed routing of the pipeline will allow access to an extensive existing pipeline infrastructure and refinery network, with a final coastal delivery point that also affords access to the majority of India’s refining capacity.
Northern Appraisal Area (Cairn India 100%)
A Declaration of Commerciality (DoC) for the three discoveries made in this area (Kameshwari West 2, 3 and 6) has been approved by the JV partners, along with a proposed new Development Area of 1,178 km2. The DoC is now awaiting approval from the GoI.
Exploration Overview Rajasthan and other assets
The 2008 exploration programme is well underway and new acreage has been awarded in Sri Lanka and bids submitted in the NELP VII licensing round in India.
The seismic acquisition carried out this year will position Cairn India for an extensive drilling programme in 2009.
A rig has been contracted to drill up to five wells in RJ-ON-90/1 starting in Q3 2008, including drilling of under-explored plays within the basin. An important well in GV-ONN-2002/1, in the state of Bihar, which will test the potential of this part of the frontier Ganga Basin, is scheduled for Q4 2008.
The Government of Sri Lanka has awarded an exploration licence to explore for oil and natural gas in the Mannar Basin, to Cairn India. The Petroleum Resources Agreement for the offshore block SL 2007-01-001 was signed in July 2008. The block covers approximately 3,000 Km2 in water depths of 200 metres to 1800 metres.
The company has also submitted bids for blocks available in India as part of the NELP VII Round.
Cambay Basin - Western India
Block CB/OS-2: (Cairn India 40% (Operator))
In the CB/OS-2 block the Lakshmi, Gauri and CB-X fields are primarily gas producing, with some oil production. The average gross production for Q2 2008 was 15,830 boepd (comprising average gas production of 49.46 mmscfd and average oil/condensate production of 7,586 bopd. Oil production has commenced from the new wells that were added during the recent infill/development drilling campaign that concluded in Q1 2008.
CB-ONN-2002/1 (Cairn India 30% (ONGC Operator))
A three well drilling programme started in the last quarter. The first well has been drilled and currently under testing.
Krishna-Godavari Basin - Eastern India
Ravva (Cairn India 22.5% (Operator))
Average gross production from the Ravva field for Q2 2008 was 55,252 boepd (comprising average oil production of 43,040 bopd and average gas production of 73.27 mmscfd). In the last quarter the JV partners reached the milestone of producing 200 million barrels of oil from the Ravva block.
Production has now commenced from the four new infill wells and the two work over wells. In addition, one water injection well has been put into service to enhance the reservoir water-flood scheme, while one more is planned to start injection after testing the upper zone (LM6) in Q3 2008.
KG-ONN-2003/1 (Cairn India 49% (Operator – exploration phase))
Two seismic programmes have been undertaken in this block.The acquisition of a 500 km 2D seismic programme commenced in January 2008 followed by the acquisition of a 255km2 3D programme. Planning has commenced in support of drilling between three and five exploration wells from the beginning of 2009.
KG-DWN-98/2 (Cairn India 10% (ONGC Operator))
The Joint Venture has approved a three well appraisal programme for 2008, together with additional 3D seismic acquisition. Approval of an appraisal period up to July 2010 under the PSC for appraisal of the discoveries made in the block to date has been given by the GoI.
PR-OSN-2004/1 (Cairn India 35%, (Operator))
The acquisition of an offshore 3,100 km 2D seismic programme has been successfully completed. An 800 km2 3D programme on the block is planned early in 2009.
Ganga Basin- Northern India
GV-ONN-2002/1 (Cairn India 50% (Operator) Capricorn 50%)
An exploration well will be drilled in Q4 2008 .Site construction is expected to be completed early in Q3 2008.
GV-ONN-97/1 (Cairn India 15% Capricorn 15% (ONGC, Operator))
The Banda-1 well, which was spudded at the end of 2007 has been completed. The licence which ran for seven years has now been relinquished at the end of the final exploration phase of the Production Sharing Contract.
GV-ONN-2003/1 (Cairn India 49% (Operator – exploration phase) Capricorn 25%)
The acquisition of a 550 km 2D seismic programme is expected to commence in 2008.
Rest of India
VN-ONN-2003/1 (Cairn India 49% (Operator – exploration phase))
The acquisition of a 500 km 2D seismic programme is expected to commence in H2 2008.
KK-DWN-2004/1 (Cairn India 40% (ONGC, Operator))
A 3,500 km 2D seismic programme has started and is expected to be competed in H2 2008.
CORPORATE
Cairn India has further strengthened its senior leadership team with the appointment of Rick Bott as Executive Director and Chief Operating Officer, effective 15 June 2008.
Rick Bott, who is 48, brings extensive global exploration and production experience with more than 20 years in the industry leading integrated organisations, developing new business and focusing on cross-cultural leadership development. Throughout his career he has worked and traveled extensively and has been involved in evaluations and operations in more than 50 countries.
Mr Bott joins Cairn India from Devon Energy’s International division where he was vice president responsible for developing and implementing business growth and exploration strategy for assets in 12 countries outside of North America focusing on the deepwater, West Africa, South America and the Middle East/Asia.
Cairn India Limited
Registered Office: 101, West View, Veer Sarvarkar Marg, Prabhadevi
Mumbai - 400025
Corporate Office: 3rd & 4th Floors, Vipul Plaza, Sun City, Sector-54
Gurgaon - 122002
Unaudited consolidated financial results for the quarter ended 30 June 2008
(All amounts are in lakhs of Indian rupees, unless otherwise stated)
|
Sr. No.
|
Particulars
|
3 months ended 30 June 2008
(Unaudited)
|
3 months ended 30 June 2007
(Unaudited)
|
6 months ended 30 June 2008
(Unaudited)
|
6 months ended 30 June 2007
(Unaudited)
|
Previous accounting year ended 31 December 2007
(Audited)
|
|
1
|
Income from operations
|
40,363
|
24,331
|
71,947
|
47,971
|
101,226
|
|
2
|
Other income
|
5,780
|
3,513
|
7,767
|
7,128
|
13,241
|
|
3
|
Total Income (1+2)
|
46,143
|
27,844
|
79,714
|
55,099
|
114,467
|
|
4
|
Total expenditure
|
|
|
|
|
|
|
|
a) (Increase)/decrease in stock-in-trade
|
1,802
|
(1,566)
|
1,474
|
(611)
|
(1,117)
|
|
|
b) Operating expenses
|
5,014
|
3,410
|
9,678
|
8,140
|
19,458
|
|
|
c) Employees cost
|
2,919
|
2,880
|
5,441
|
5,965
|
12,574
|
|
|
d) Depreciation, depletion, amortisation & site restoration expenses
|
6,469
|
4,045
|
12,793
|
9,322
|
20,771
|
|
|
e) Other expenditure - administration cost
|
3,414
|
658
|
5,340
|
805
|
3,596
|
|
|
e) Exploration cost
|
4,276
|
7,409
|
6,025
|
12,150
|
25,123
|
|
|
f) Foreign exchange fluctuation
|
-
|
14,056
|
-
|
15,436
|
21,200
|
|
|
h) Total
|
23,894
|
30,892
|
40,751
|
51,207
|
101,605
|
|
5
|
Interest and finance cost
|
287
|
77
|
320
|
92
|
270
|
|
6
|
Exceptional items
|
-
|
-
|
(1,557)
|
-
|
-
|
|
7
|
Profit/(Loss) from ordinary activities before tax (3) - (4+5+6)
|
21,962
|
(3,125)
|
40,200
|
3,800
|
12,592
|
|
8
|
Provision for taxation
|
|
|
|
|
|
|
|
a) Current tax
|
1,461
|
1,283
|
2,426
|
2,192
|
3,877
|
|
|
b) Deferred tax
|
4,683
|
2,649
|
10,224
|
4,813
|
7,642
|
|
|
c) Fringe benefit tax
|
1,960
|
87
|
2,049
|
183
|
3,527
|
|
9
|
Net Profit/(Loss) from ordinary activities after tax (7-8)
|
13,858
|
(7,144)
|
25,501
|
(3,388)
|
(2,454)
|
|
10
|
Extraordinary items (net of tax)
|
-
|
-
|
-
|
-
|
-
|
|
11
|
Net Profit/(Loss) for the period (9-10)
|
13,858
|
(7,144)
|
25,501
|
(3,388)
|
(2,454)
|
|
12
|
Paid-up Equity Share Capital
(Face value of Rs.10 each)
|
189,443
|
177,840
|
189,443
|
177,840
|
177,840
|
|
13
|
Reserves excluding Revaluation Reserves
|
-
|
-
|
-
|
-
|
2,756,269
|
|
14
|
Earning/(Loss) per share - in rupees*
(Face value of Rs.10 each)
|
|
|
|
|
|
|
|
a) Basic earnings/(loss) per share
|
0.74
|
(0.40)
|
1.40
|
(0.19)
|
(0.14)
|
|
|
b) Diluted earnings/(loss) per share
|
0.74
|
(0.40)
|
1.39
|
(0.19)
|
(0.14)
|
|
15
|
Public Shareholding
|
|
|
|
|
|
|
|
- Number of shares
|
667,585,947
|
551,555,629
|
667,585,947
|
551,555,629
|
551,555,629
|
|
|
- Percentage of shareholdings
|
35.24%
|
31.01%
|
35.24%
|
31.01%
|
31.01%
|
*not annualized
Notes:-
1. The above unaudited financial results of the current quarter have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting held on 29th July 2008. The limited review of the consolidated financial results for the quarter ended 30th June 2008 was conducted by the auditors of the Company. However, the results for the quarter ended 30th June 2007 were not reviewed by the auditors.
2. The Company and its subsidiaries operate in only one segment i.e. 'Oil and Gas Operations'.
3. The stock options outstanding as at 30th June 2008 were 4,476,155 options under Cairn India Senior Management Plan 2006 ('CISMP'), 4,273,713 options under Cairn India Performance Option Plan 2006 ('CIPOP') and 8,545,710 options under Cairn India Employees Stock Option Plan 2006 ('CIESOP'). 2,238,078 options and 3,030,318 options were exercised under CISMP plan during the quarter and six months ended 30th June 2008 respectively. Further, 481,531 options were cancelled under CIPOP plan during the quarter and six months ended 30th June 2008 and no new options were issued under the said period. Employees cost for the quarter and six months ended 30th June 2008 includes Rs.1,058 lakhs and Rs.2,311 lakhs respectively, representing the amortization of employee compensation expenses pertaining to these stock option schemes.
4. The Company had decided to retrospectively account for stock option using the Intrinsic Value Method as against the Fair Value Method (Black Scholes) followed till the financial year ended 31st December 2007. Accordingly, the excess stock option provision up to 31st December 2007 was reversed during the quarter ended 31st March 2008, resulting in an exceptional gain of Rs.1,557 lakhs. Further, the stock option charge for the current quarter and six months ended 30th June 2008 (included in employee cost) are lower by Rs.680 lakhs and Rs.1,362 lakhs respectively due to this change.
5. Exploration costs include costs pertaining to geological/geophysical studies, seismic and other surveys. These costs have been charged to the profit and loss account as per the provisions of the Successful Efforts Method of accounting for acquisition, exploration and development costs prescribed under the Guidance Note on Accounting for Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.
6. Other income for the quarter and six months ended 30th June 2008 includes foreign exchange fluctuation of
Rs.2,539 lakhs and Rs.2,350 lakhs respectively representing the net gain arising on settlement and translation of foreign currency monetary items at the rate prevailing at the end of the reporting date and the cost arising on the USD/INR options (taken for hedging the foreign currency risks of the group) settled or marked-to-market as at 30th June 2008.
7. The current tax and deferred tax provisions have been computed on the basis of standalone financials of those foreign subsidiaries, which have operations in India i.e. not based on consolidated financials of Cairn India Limited and all its subsidiaries.
8. During the current quarter, Cairn India Limited has allotted 113,000,000 equity shares of Rs.10 each at a price of Rs.224.30 per share on preferential basis to non-promoter investors.
9. Previous quarter / six months / year figures have been regrouped /rearranged wherever necessary to confirm to the current quarter's presentation.
|
|
For and on behalf of the Board
|
|
|
|
|
Place: Edinburgh, Scotland
|
Rahul Dhir
|
|
Date: 29th July 2008
|
Managing Director and Chief Executive Officer
|
Cairn India Limited
Registered Office: 101, West View, Veer Sarvarkar Marg, Prabhadevi
Mumbai - 400025
Corporate Office: 3rd & 4th Floors, Vipul Plaza, Sun City, Sector-54
Gurgaon - 122002
Unaudited standalone financial results for the quarter ended 30 June 2008
(All amounts are in lakhs of Indian rupees, unless otherwise stated)
|
Sr. No.
|
Particulars
|
3 months ended 30 June 2008
(Unaudited)
|
3 months ended 30 June 2007
(Unaudited)
|
6 months ended 30 June 2008
(Unaudited)
|
6 months ended 30 June 2007
(Unaudited)
|
Previous accounting year ended 31 December 2007
(Audited)
|
|
1
|
Income from operations
|
97
|
36
|
186
|
86
|
127
|
|
2
|
Other income
|
2,161
|
849
|
2,781
|
2,059
|
3,269
|
|
3
|
Total Income (1+2)
|
2,258
|
885
|
2,967
|
2,145
|
3,396
|
|
4
|
Total expenditure
|
|
|
|
|
|
|
|
a) (Increase)/decrease in stock-in-trade
|
-
|
-
|
-
|
-
|
-
|
|
|
b) Operating expenses
|
2
|
-
|
363
|
-
|
-
|
|
|
c) Employees cost
|
662
|
1,325
|
2,135
|
3,397
|
6,234
|
|
|
d) Depreciation, depletion, amortisation & site restoration expenses
|
-
|
-
|
-
|
-
|
-
|
|
|
e) Other expenditure - administration cost
|
1,121
|
297
|
1,677
|
337
|
1,748
|
|
|
e) Exploration cost
|
2,966
|
20
|
3,710
|
20
|
89
|
|
|
f) Foreign exchange fluctuation
|
407
|
-
|
407
|
-
|
-
|
|
|
h) Total
|
5,158
|
1,642
|
8,292
|
3,754
|
8,071
|
|
5
|
Interest and finance cost
|
-
|
-
|
-
|
2
|
2
|
|
6
|
Exceptional items
|
-
|
-
|
(1,557)
|
-
|
-
|
|
7
|
Profit/(Loss) from ordinary activities before tax (3) - (4+5+6)
|
(2,900)
|
(757)
|
(3,768)
|
(1,611)
|
(4,677)
|
|
8
|
Provision for taxation
|
|
|
|
|
|
|
|
a) Current tax
|
-
|
-
|
-
|
-
|
-
|
|
|
b) Deferred tax
|
-
|
-
|
-
|
-
|
-
|
|
|
c) Fringe benefit tax
|
1,768
|
-
|
1,774
|
-
|
3,205
|
|
9
|
Net Profit/(Loss) from ordinary activities after tax (7-8)
|
(4,668)
|
(757)
|
(5,542)
|
(1,611)
|
(7,882)
|
|
10
|
Extraordinary items (net of tax)
|
-
|
-
|
-
|
-
|
-
|
|
11
|
Net Profit/(Loss) for the period (9-10)
|
(4,668)
|
(757)
|
(5,542)
|
(1,611)
|
(7,882)
|
|
12
|
Paid-up Equity Share Capital
(Face value of Rs.10 each)
|
189,443
|
177,840
|
189,443
|
177,840
|
177,840
|
|
13
|
Reserves excluding Revaluation Reserves
|
-
|
-
|
-
|
-
|
2,750,037
|
|
14
|
Earning/(Loss) per share - in rupees*
(Face value of Rs.10 each)
|
|
|
|
|
|
|
|
a) Basic earnings/(loss) per share
|
(0.25)
|
(0.04)
|
(0.30)
|
(0.09)
|
(0.44)
|
|
|
b) Diluted earnings/(loss) per share
|
(0.25)
|
(0.04)
|
(0.30)
|
(0.09)
|
(0.44)
|
|
15
|
Public Shareholding
|
|
|
|
|
|
|
|
- Number of shares
|
667,585,947
|
551,555,629
|
667,585,947
|
551,555,629
|
551,555,629
|
|
|
- Percentage of shareholdings
|
35.24%
|
31.01%
|
35.24%
|
31.01%
|
31.01%
|
*not annualized
Notes:-
1. The above unaudited financial results of the current quarter have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meeting held on 29th July 2008. The limited review was carried out by the auditors of the Company.
2. The Company operates in only one segment i.e. 'Oil and Gas Operations'
3. The stock options outstanding as at 30th June 2008 were 4,476,155 options under Cairn India Senior Management Plan 2006 ('CISMP'), 4,273,713 options under Cairn India Performance Option Plan 2006 ('CIPOP') and 8,545,710 options under Cairn India Employees Stock Option Plan 2006 ('CIESOP'). 2,238,078 options and 3,030,318 options were exercised under CISMP plan during the quarter and six months ended 30th June 2008 respectively. Further, 481,531 options were cancelled under CIPOP plan during the quarter and six months ended 30th June 2008 and no new options were issued under the said period. Employees cost for the quarter and six months ended 30th June 2008 includes Rs.543 lakhs and Rs.1,796 lakhs respectively, representing the amortization of employee compensation expenses pertaining to these stock option schemes.
4. The Company has offered certain share options to some of the employees of one of its subsidiary company and it was bearing the charge in its profit & loss account till 31st March 2008. With effect from 1st April 2008, the management has decided that this charge would be borne by the immediate employer company of those employees. Accordingly, the stock option charge for the current quarter ended 30th June 2008 is lower by Rs.514 lakhs.
5. The Company had decided to retrospectively account for stock option using the Intrinsic Value Method as against the Fair Value Method (Black Scholes) followed till the financial year ended 31st December 2007. Accordingly, the excess stock option provision up to 31st December 2007 was reversed during the quarter ended 31st March 2008, resulting in an exceptional gain of Rs.1,557 lakhs. Further, the stock option charge for the current quarter and six months ended 30th June 2008 are lower by Rs.680 lakhs and Rs.1,362 lakhs respectively due to this change.
6. Exploration costs include costs pertaining to geological/geophysical studies, seismic and other surveys. These costs have been charged to the profit and loss account as per the provisions of the Successful Efforts Method of accounting for acquisition, exploration and development costs prescribed under the Guidance Note on Accounting for Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.
7. The number of investors' complaints received and disposed of during the quarter ended 30th June 2008 were as follows-
|
(a)
|
Pending at the beginning of the quarter
|
18
|
|
(b)
|
Received during the period
|
129
|
|
(c)
|
Disposed of during the period
|
120
|
|
(d)
|
Pending at the end of the quarter
|
27
|
8. As at 30th June 2008, the Company and its subsidiaries together have utilized Rs. 786,709 lakhs for the purposes listed in the Prospectus, as against the projected utilization of Rs.882,489 lakhs. The funds utilized till 30th June 2008 were as follows-
|
|
|
Rupees in lakhs
|
|
(a)
|
Acquisition of shares of Cairn India Holdings Limited from Cairn UK Holdings Limited
|
595,808
|
|
(b)
|
Exploration and Development expenses
|
172,680
|
|
(c)
|
General corporate purposes
|
2,224
|
|
(d)
|
Issue expenses
|
15,996
|
9. During the current quarter, the Company has allotted 113,000,000 equity shares of Rs.10 each at a price of Rs.224.30 per share on preferential basis to non-promoter investors.
10. Previous quarter / six months / year figures have been regrouped /rearranged wherever necessary to confirm to the current quarter's presentation.
|
|
For and on behalf of the Board
|
|
|
|
|
Place: Edinburgh, Scotland
|
Rahul Dhir
|
|
Date: 29th July 2008
|
Managing Director and Chief Executive Officer
|
Enquiries to:
Analysts/Investors
Anurag Mantri, Investor Relations Manager +919810301321
Media
David Nisbet, Director, Corporate Communications +9199106 94336
About Cairn India Limited
- “Cairn” where referred to in this release means Cairn Energy PLC and/or its subsidiaries (including Cairn India), as appropriate.
- Cairn India is headquartered in Gurgaon on the outskirts of Delhi, with operational offices in Chennai, Gujarat, Andhra Pradesh and Rajasthan.
- On 9 January 2007, Cairn successfully concluded the flotation of its Indian business with the commencement of trading of Cairn India Limited on the Bombay Stock Exchange and the National Stock Exchange of India. Cairn Energy PLC currently holds a 65% shareholding in Cairn India Limited.
- Cairn India is currently focused on exploration and production in India where it has a working interest in 14 blocks, two of which are producing hydrocarbons. The company holds material exploration and production positions in west India and east India along with new exploration rights elsewhere in India and Sri Lanka.
- This focus on India has already resulted in a significant number of oil and gas discoveries. In particular, Cairn made a major oil discovery (Mangala) in Rajasthan in the north west of India at the beginning of 2004. More than 20 discoveries have been made in Rajasthan block RJ-ON-90/1.
- In Rajasthan, Cairn India operates Block RJ-ON-90/1 under a Production Sharing Contract (PSC) signed on 15 May 1995. The main Development Area (1,858 km2), which includes Mangala, Aishwariya, Saraswati and Raageshwari; is shared between Cairn India and ONGC, with Cairn India holding 70% and ONGC having exercised their back in right for 30%. A further Development Area (430 km2), including the Bhagyam and Shakti fields, is also shared between Cairn India and ONGC in the same proportion.
- The Operating Committee for Block RJ-ON-90/1 consists of Cairn India and ONGC.
- India currently imports approximately 2,000,000 barrels of oil per day (bopd). It produces approximately 700,000 bopd itself of which approximately 50,000 bopd comes from the Cairn India operated Ravva field on the east coast of India
For further information on Cairn India Limited see www.cairnindia.com
Glossary
Technical
|
2P
|
proven plus probable
|
|
3P
|
proven plus probable and possible
|
|
2D/3D
|
two dimensional/three dimensional
|
|
boe
|
barrel(s) of oil equivalent
|
|
boepd
|
barrels of oil equivalent per day
|
|
bopd
|
barrels of oil per day
|
|
bscf
|
billion standard cubic feet of gas
|
|
EOR
|
enhanced oil recovery
|
|
FDP
|
field development plan
|
|
mmboe
|
million barrels of oil equivalent
|
|
mmscfd
|
million standard cubic feet of gas per day
|
|
PSC
|
production sharing contract
|
The Fatehgarh is the name given to the primary reservoir rock of the Northern Rajasthan fields of Mangala, Aishwariya and Bhagyam.
The Barmer Hill is a lower permeability reservoir which overlies the Fatehgarh.
The Dharvi Dungar forms the secondary reservoirs in the Guda field and is the reservoir rock encountered in the recent Kameshwari West discoveries.
The Thumbli forms the youngest reservoirs encountered in the basin. The Thumbli is the primary reservoir for the Raageshwari field.
These materials contain forward-looking statements regarding Cairn India, our corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward-looking statements are based on our management's assumptions and beliefs in the light of information available to them at this time. These forward-looking statements are, by their nature, subject to significant risks and uncertainties and actual results, performance and achievements may be materially different from those expressed in such statements. Factors that may cause actual results, performance or achievements to differ from expectations include, but are not limited to, regulatory changes, future levels of industry product supply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development and use of technology, acts of competitors and other changes to business conditions. Cairn India undertakes no obligation to revise any such forward-looking statements to reflect any changes in Cairn India's expectations with regard thereto or any change in circumstances or events after the date hereof. Unless otherwise stated the reserves and resource numbers within this presentation represent the views of Cairn India and do not represent the views of any other party, including the Government of India, the Directorate General of Hydrocarbons or any of Cairn India’s joint venture partners.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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