Mumbai: Exploration and production (E&P) giant Cairn India has posted its biggest loss ever, in the fourth quarter of fiscal 2014-15, thanks in part to an impairment loss of $79.74m (INR5.05bn) originating from its oil exploration activities in Sri Lanka’s Mannar basin.
Plummeting crude oil prices in the global market also contributed to converting a net profit of $491m last year into a net loss of $39m on revenues of just $430m, a 47% fall year-on-year (yoy).
The full financial year 2014-15 turned out badly for the company, with revenues of $2.4bn, a 23% decline yoy, as also a 64% decline in net profit yoy to $733m.
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 E&P staff.
Sri Lankan government officials said Cairn would not go into the development stage of the gas deposits it had found in the Mannar basin. The authorities said they were 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.