The operator of the country's largest on-land oil block in Rajasthan, Cairn India has reported a record quarterly loss of Rs 10,948.22 crore for the three months ended 31 March, mainly because of an impairment charge on goodwill and non-producing oil and gas assets due to falling crude oil prices, compared with a net loss of Rs 240.82 crore in the same period a year ago. “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 oil and 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 reflected lower crude oil prices, prevailing discount on oil produced from the Rajasthan block as well as adverse long term impact of revised cess. Production fell 8% to 206,170 barrels of oil and oil equivalent gas in the fourth quarter of 2015-16. Its mainstay Rajasthan field produced 5% less oil at 164,826 barrels per day.

Revenue fell 36% to Rs.1,717 crore on lower oil prices. The company realized an average of $27.8 per barrel for the oil it produced in January-March, down 43% from %48.6 per barrel a year ago.Gas price realization was up 19% to $7.4 per million standard cubic feet. For the full 2015-16 fiscal year, the company posted a net loss of Rs.9,432 crore, compared with a Rs.4,480 crore profit in the previous year.

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. “The Cairn team has delivered a resilient performance in a challenging year. Drive for cost efficiency and rationalization of capital investment have aided free cash generation despite crude prices plummeting to a 12 year low,” said Mayank Ashar, managing director and chief executive of Cairn India.