31st Jul 2015 11:29
LONDON (Alliance News) - Vedanta Resources PLC Friday reported a dramatic fall in revenue and earnings in its first quarter, as weak commodity prices hit many of its segments.
The FTSE 250-listed multi-commodity company said revenue in the first quarter ended June 30 totalled USD2.95 billion, falling from USD3.06 billion a year earlier, as some of its segments, especially its oil and gas division, reported a drop in earnings due to commodity price declines.
That led to earnings before interest, tax, depreciation and amortisation of USD644.6 million, down 38% from the USD1.04 billion reported a year earlier.
The oil and gas division generated Ebitda of USD215.4 million in the first quarter of the financial year, falling from USD549.9 million a year earlier, as revenue tanked to USD413.0 million from USD748.0 million.
That was caused by the fall in oil and gas prices in the period, averaging USD62 per barrel compared to USD110 per barrel a year earlier, and a 4% drop in average daily gross production to 209,738 barrels of oil equivalent per day from 217,869 barrels.
Vedanta's zinc business was the biggest contributor to Ebitda in the period, with its Indian zinc operations reporting an Ebitda rise to USD255.4 million from USD230.2 million, as revenue increased to USD558.2 million from USD485.9 million.
Refined zinc production from India rose 33% to 187,000 tonnes from 141,000 tonnes whilst refined lead production was flat at 31,000 tonnes. Saleable silver production fell 8% to 242,000 ounces from 264,000 ounces.
Zinc prices improved 6% to USD2,190 per tonne in the quarter from USD2,074 per tonne but lead prices fell 7% to USD1,942 per tonne from USD2,096. and silver prices decreased 16% to USD16.40 per ounce from USD19.60.
Its other zinc businesses outside of India contributed USD37.3 million in Ebitda in the first quarter, falling from USD38.4 million, as revenue dropped to USD139.3 million from USD144.4 million.
Refined zinc production from those businesses totalled 26,000 tonnes from 33,000 tonnes.
Ebitda from Vedanta's copper operations in India and Australia totalled USD82.4 million in the first quarter, rising from USD33.2 million a year earlier, as revenue rose to USD877.4 million from USD797.6 million.
Copper production from those two countries totalled 98,000 tonnes of copper cathode, up 49% from 66,000 tonnes a year earlier.
Ebitda from copper operations in Zambia was USD6.0 million, compared to USD28.0 million, despite revenue rising to USD289.9 million from USD287.5 million.
The Zambian operations produced 43,000 tonnes of finished copper in the quarter compared to 42,000 tonnes a year earlier, but prices fell 11% to USD6,043 per tonne from USD6,787 per tonne.
Revenue from iron ore in the quarter dropped 12% to USD75.6 million from USD85.6 million, leading to an Ebitda of USD3.4 million, down from USD3.9 million.
Revenue from aluminium fell 2% year-on-year to USD430.4 million from USD438.5 million, leading to a loss before interest, tax, depreciation and amortisation of USD1.9 million, swinging from a USD88.4 million Ebitda profit a year earlier.
Total aluminium production rose 14% to 232,000 tonnes from 203,000 tonnes but prices declined 2% to USD1,765 per tonne from USD1,798 per tonne.
The power unit contributed USD190.2 million in revenue, up 17% from USD162.5 million leading to Ebitda of USD43.6 million, down 35% from USD66.7 million despite power sales rising 18% to 3.07 billion units from 2.59 billion units.
Vedanta shares were down 1.8% to 378.00 pence per share on Friday, one of the worst performers in the FTSE 250.
By Joshua Warner; [email protected]; @JoshAlliance
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