29th Jan 2015 10:54
LONDON (Alliance News) - Vedanta Resources PLC Thursday said its Indian subsidiary, Sesa Sterlite Ltd, benefited from currency depreciation and better operating efficiencies in the third quarter, but warned this was more than offset by lower oil prices and weaker commodity prices.
Vedanta holds a controlling 51% stake in Sesa Sterile.
Sesa Sterile reported an earnings before interest, tax, depreciation and amortization margin of 43%, with EBITDA standing at INR62.34 billion in the third quarter, on the back of higher volumes and lower costs. The company said the better operating performance and the benefits felt from currency depreciation was more than offset by the lower brent and commodity prices.
The subsidiary reported revenue of INR191.28 billion during the third quarter, a 2% reduction quarter on quarter, driven by the low oil price and weaker copper, zinc, lead and silver prices during the period, partially offset by a 13% increase in production.
Gross average daily production reached 219,000 barrels of oil equivalent per day in the third quarter.
Year on year, revenue during the third quarter fell by 1% compared to the third quarter in 2013, with oil prices dropping 29% between the two periods, whilst copper prices fell by 7%, lead by 5% and silver by 21%, said the company.
Zinc and aluminium prices increased by 17% and 11% respectively since the third quarter of 2013.
Depreciation for the third quarter reached INR17.82 billion, an increase from a year earlier to reflect a change in the depreciation method used in its accounting, it said.
At the end of December, Sesa Sterile reported net debt of INR3.22 billion, with a cash balance of INR4.7 billion.
Vedanta shares were down 2.7% to 379.10 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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