MUMBAI, March 4, 2015 /PRNewswire/ --
The following release was issued today by Sesa Sterlite Limited's subsidiary Cairn India Limited.
Cairn India Limited
Cairn India Limited (CIL), one of the leading independent exploration and production companies in the world, is pleased to announce its guidance.
In continuation of our communication at the end of Q3FY15 and in light of the current oil price environment, Cairn is taking a proactive approach to capital allocation and shareholder returns. The Company will be undertaking projects that are economically viable at current oil prices. Additionally management focus is on re-engineering projects and re-negotiating contracts to improve project economics.
With close to USD 1.1 billion of capex invested in FY15, the Company is revising the capex for FY16 from the projected USD 1.2 billion to USD 500 million, while deferring the rest. The Company will remain agile to make investments to enhance volumes. Despite the partial deferment of capex, the volumes will yet see growth in the coming fiscal.
The Company has received Management Committee approval for the Raag Deep Gas Project.
As always, the focus will be on free cash flow after capex and dividend payout.
Mr. Mayank Ashar, Managing Director and CEO of Cairn India commented:
"We would like to give confidence to our shareholders that we are more focused than ever to drive operational efficiencies in the current crude price environment. Our cash rich balance sheet and best-in-class cost profile provide a solid foundation to operate our high margin core fields. This gives us the optionality to be selective about growth projects in these challenging times."
Arun Arora, Chief Communication Officer
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About Sesa Sterlite Limited (Formerly known as Sesa Goa Limited)
Sesa Sterlite Limited (SSLT) is one of the world's largest diversified natural resources companies, whose business primarily involves exploring and processing minerals and oil & gas. SSLT produces oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and has a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Sustainability is at the core of SSLT's strategy, with a strong focus on health, safety and environment and on enhancing the lives of local communities.
SSLT is a subsidiary of Vedanta Resources Plc, a London-listed company. SSLT is listed on the Bombay Stock Exchange and the National Stock Exchange in India and has ADRs listed on the New York Stock Exchange.
This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
SOURCE Sesa Sterlite Limited