Cairn India, the oil and gas exploration and production company belonging to the diversified Vedanta Group, reported a record net loss of Rs. 10,948 crore for the fourth quarter ended March 31, 2016, as against Rs. 241 crore in the corresponding period in the previous fiscal. The steep rise was due to the one-time charge of Rs. 11,674 crore, it said in a regulatory filing on Friday.
"Exceptional items for the year amounted to ₹ 11,674 crore primarily on account of Impairment of goodwill due to a significant decline in oil prices last year," the company said in its filing to the Bombay Stock Exchange (BSE).
Cairn India reported a 36 percent fall in revenues on a year-on-year basis to Rs. 1,717 crore on account of the steep fall in oil prices. In the corresponding period in 2014-15, the company's revenues stood at Rs. 2,677 crore.
The average price realisation per barrel of oil produced by the company plunged 43 percent to $27.8 in the fourth quarter ended March 2016 from $48.6/bbl in the corresponding quarter last fiscal.
The company's total oil and gas production during the March 2016 quarter fell 8 percent to 206,170 units (barrels of oil per day, or boepd). The fall was mainly due to the 5 percent drop in production at its Rajasthan field which accounts for about four-fifths of the company's total output.
For the financial year 2015-16, Cairn India reported a net loss of Rs. 9,432 crore as against net profit of Rs. 4,480 crore. Revenues dropped 41 percent to Rs. 8,626 crore from Rs. 14,646 crore in 2014-15.
"The Cairn team has delivered a resilient performance in a challenging year. Drive for cost efficiency and rationalisation of capital investment have aided free cash generation despite crude prices plummeting to a 12 year low," Mayank Ashar, the Managing Director and CEO of Cairn India, said in a statement.
The company recommended a dividend of Rs. 3 per equity share for the year.
The Cairn India stock closed at Rs. 151.40 on the BSE on Friday.
Cairn India is part of the Anil Agarwal-led Vedanta Group that has interests in aluminium, copper, zinc, lead, silver and iron ore. Navin Agarwal is the chairman and non-executive director of Cairn India.