30th Jan 2015 07:55
LONDON (Alliance News) - Vedanta Resources PLC Friday said earnings fell in the third quarter from a year earlier, despite revenue rising, due to lower oil and commodity prices and said production increased quarter on quarter across the board.
For the third quarter ended December 31, the company reported earnings before interest, tax, depreciation and amortisation of USD1.02 billion, down 11% from a year earlier when it reported an EBITDA of USD1.14 billion.
Revenue during the quarter totalled USD3.35 billion, compared to USD3.33 billion a year earlier.
Gross daily production averaged 218,900 barrels of oil equivalent per day during the quarter from its oil and gas production following production at Rajasthan resuming normal levels after a planned maintenance shut-down carried out in the second quarter. This is a 13% increase quarter on quarter.
Rajasthan is the company's largest producing oil and gas asset, and achieved operating costs of USD5.7 per barrel, "one of the lowest in the world," said the company.
"Our oil fields are resilient to volatility in oil prices due to their low operating cost and high margin and continue to generate positive free cash flows," it said.
Mined metal production from India in the third quarter rose 14% quarter on quarter and 10% year on year to 242,000 tonnes after the company saw increased production at the Ramura Agucha mine and achieved higher grades across all of its mines. Production from Zinc International dropped 6% quarter on quarter.
Vedanta said mined metal production in India should increase in the fourth quarter, taking full year production "marginally higher" than last year.
Higher mined metal production led to an 11% increase quarter on quarter of integrated refined zinc production in India, whilst integrated silver production also rose 3% quarter on quarter. Zinc metal cost of production in the three months to end December, before royalties, was USD813 per tonne, down 9% from the previous quarter and 2% lower than a year earlier.
Copper production from Zambia totalled 29,000 tonnes in the third quarter, down 10% quarter on quarter due to ongoing remediation work.
"We made substantial progress during the quarter on enhancing production and starting up some of our new capacities," said Chief Executive Tom Albanese.
Vedanta reported cash and liquid investments of USD8.0 billion at the end of the quarter with undrawn facilities of USD850 million. Net debt stood at USD8.8 billion with USD1.27 billion in debt maturities in 2015, which are both being financed at lower costs, said Vedanta.
By Joshua Warner; [email protected]; @JoshAlliance
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