Cairn said in a results statement that net profits slumped by 76 percent to 362 million pounds in the six months to the end of June, compared with 1.514 billion pounds previously.
Operating profit stood at 44.2 million pounds in the first half owing to soaring crude oil prices.
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That contrasted with an operating loss of 18.2 million pounds in the same period of last year.
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In 2007, Cairn Energy booked an exceptional gain of 1.539 billion dollars on the disposal of 31 percent of Cairn India through an initial public offering.