Cairn India today reported its biggest quarterly loss of Rs 10,948 crore in the quarter ended March 31 mainly because of impairment loss on goodwill and non-producing oil and gas assets due to drop in oil prices.
Net loss of Rs 10,948.22 crore in January-March compared with a net loss of Rs 240.82 crore in the same period a year ago, the company said in a statement.
"Due to decline in crude oil prices in the international market, the Group has recorded an impairment on the carrying value of goodwill and some of its non-producing oiland gas assets aggregating to Rs 11,389.63 crore and Rs 284.17 crore respectively," it said.
Cairn said the impairment of Rs 11,674 crore largely reflects the lower crude price, prevailing discount on oil produced from Rajasthan block as well as adverse long term impact of revised cess.
The company realised an average of USD 27.8 per barrel for oil it produced in January-March, down 43 per cent from USD 48.6 per barrel a year ago. Gas price realisation was however up 19 per cent at USD 7.4 per million standard cubic feet.
The loss did not prevent the company board from declaring a Rs 3 per share dividend by dipping into cash reserves of Rs 19,521 crore.
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