Net revenue for Q2FY16 was reported at Rs.2,242 crore, which declined 15 per cent QoQ mainly due to fall in crude prices and increase in discount to Brent for Rajasthan crude. Average Brent prices fell 18 per cent QoQ to $50.5 per barrel driving our average oil realization down by 22 per cent QoQ to $43.7/bbl.
EBITDA for the quarter came in at Rs.966 crore with a strong EBITDA margin of 43 per cent. EBITDA was down 26 per cent QoQ on account of lower realisation and increase in overall operating cost due to increase in polymer injection volumes.
There was reversal of tax expense by Rs.130 crore in the second quarter against charge of Rs.141 crore in the first quarter. We posted profit after tax of Rs.673 crore with a healthy profit margin of 30 per cent.
During Q2FY16, Cairn had a gross production of 18.9 mmboe from its three producing blocks where it enjoys 100 per cent operatorship, of which net working interest production was 11.8 mmboe.
Mayank Ashar, Managing Director and CEO of Cairn India, commented, “Our strategic objective is to maintain healthy cash flows post dividend. The last quarter has seen this strategy tested and we have responded by recommitting our efforts to drive down costs and focus on adopting advanced technologies to improve our efficiencies and productivity. Improving our health, safety and environmental standards remain at the core of all our activities.”