Cairn India Q1 net profit drops 28%, will merge with VedantaStaff Writer | July 25, 2016
Oil explorer Cairn India said consolidated net profit in the first quarter of its business year fell 28 percent from the same period a year ago due to lower crude oil prices.
Oil exploration Cairn profit was $53.61 million
The first-quarter's performance represented a significant improvement on the previous quarter however, when Cairn IndiaBSE 8.72 % reported a loss of 5.6 billion rupees. The improvement was due to a recovery in prices in April-June, when the Brent crude oil price averaged $47.03 a barrel.
Earlier in the day, Navin Agarwal, chairman of the company, informed shareholders in its annual general meeting that the company plans to quadruple its natural gas output from the Rajasthan field in the next 18 to 24 months.
The boards of Vedanta Limited and Cairn India approved revised and final terms for the merger. Each Cairn India minority shareholder will receive for each equity share held, one equity share in Vedanta and four redeemable preference shares with a face value of Rs 10 in Vedanta.
This translates to implied premium of 20 percent to one month volume-weighted average price (VWAP) of Cairn India share price. ■