Cairn India in the red over Lankan exploration costs

29 April 2015 04:47 am - 0     - {{hitsCtrl.values.hits}}

A A A

Cairn India has incurred an impairment loss of US$ 79.74 million (INR 505 crores) originating from its oil exploration activities in Sri Lanka’s Mannar basin, the company’s fourth quarter results showed. 
This, coupled with falling crude prices in the global market, has led to the oil giant posting its biggest loss ever. For the fourth quarter ending in March, Cairn posted a revenue of just US$430 million, a 47 percent fall year-on-year (yoy) leading to a net loss of US$ 39 million, a nosedive from a US$ 491 million net profit yoy.
The entire financial year turned out negatively for the company, generating a revenue of US$ 2.4 billion which is a 23 percent decline yoy, leading to a 64 percent decline in net profits yoy to US$ 733 million. The oversupply of crude in the global market from the shale oil boom in North America had forced the company to retreat to its core oil fields in Rajasthan in January; laying off thousands of its exploration and development staff.
Sri Lankan government officials recently said Cairn would not go into the development stage of the gas deposits it had found in the Mannar basin. 
Cairn, in response, neither admitted nor rejected the comments. 
 The government said it was looking for other partners to develop the gas fields discovered. 
The Petroleum Resource Agreement Cairn has with the Sri Lankan government is set to expire this November. 

  Comments - 0


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Wanathawilluwa forest clearance: Whodunit?

Days after the Anawilundawa Ramsar Wetland, situated in Puttalam District, ma

‘I’m scared to see her face’

On August 13, a woman happened to meet a child who was in desperate need of h

Kidneys that whisper death

A flute version of Beethoven’s ‘Für Elise’ was echoing from a distance

Burning Panamanian tanker leaves SL authorities gutted

Weeks after MV Wakashio, a Japanese-owned bulk carrier, ran aground a coral r