Cairn still awaits India sale approval

22nd Mar 2011 07:10

Cairn Energy has yet to reach an agreement with the Indian authorities over the proposed sale of its Rajasthan assets to Vedanta.Hopes had been raised that Cairn would announce a deal had been struck with today's results, but the group just repeated that the sale of its 51% stake in Cairn India is awaiting approval. The sale could rise $6bn and once approved Cairn is expected to return between is worth between 90p and 135p a share to its owners. Upon completion Cairn's residual holding could be up to 22% in Cairn India, the firm said.Cairn posted a net profit of $1.08bn in 2010, up from $53m, nearly all of which came from the Indian business, which turned in a net profit of $1.4bn. The ongoing business, which includes the drilling in Greenland lost $303m. Overall, revenues rose to $1.6bn from $234m. Production rose to 65,000 barrels per day, from 14,000, while the sale price per barrel rose to $69 from $50."The potential completion of the Vedanta transaction would uniquely position Cairn to return significant value to shareholders whilst retaining the financial flexibility to continue to focus on Cairn's core expertise in exploration. 2011 looks set to be an exciting year for Cairn as we continue to pursue future growth opportunities," chairman Norman Murray said.