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Cairn India to cut its projected capital expenditure by 58% for FY16

05 Mar 2015 Evaluate

Cairn India is all set to cut its projected capital expenditure by 58% for the next financial year to $500 million from the earlier projection of $1,200 million due to historic decline in global crude oil prices.

The company’s capex in the current financial year stands at $1.1 billion and in light of the current oil price environment, it is taking a proactive approach to capital allocation and shareholder returns.

The company will also undertake projects that are economically viable at current oil prices, its management’s focus is on re-engineering projects and re-negotiating contracts to improve project economics and it will remain agile to make investments to enhance volumes.

 

Peers
Company Name CMP
ONGC 283.95
Oil India 470.10
Jindal Drilling&Inds 540.15
Deep Industries 476.90
Asian Energy Service 306.05
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