29th Jan 2016 07:52
LONDON (Alliance News) - India-focused oil and gas explorer and miner Vedanta Resources PLC on Friday said its revenue for the third quarter dropped significantly year-on-year as the group contended with a tough commodities market.
FTSE 250-listed Vedanta said its group revenue for the quarter to the end of December was USD2.44 billion, down from USD3.36 billion a year earlier. For the nine months to the end of December, revenue fell to USD8.13 billion from USD9.81 billion.
The revenue falls were broadly shared out across its operations, with revenue falling across the board for its zinc, iron ore, copper and aluminium mining operations and for its oil and gas business.
Production levels remained robust across the company, with record quarterly refined silver production from its Zinc India business and record metal production in its aluminium unit, but revenue was dragged lower across the board by sinking commodities prices.
Group earnings before interest, taxation, depreciation and amortisation also suffered in the third quarter, down 51% on a group level, though cost-cutting efforts meant earnings from its iron ore and copper operations improved. This was not, however, enough to offset sharp earnings declines for its zinc, oil and gas and aluminium businesses.
"In the weak commodity price environment, we remain committed to optimising our operations, leveraging our high quality asset base, and proactively managing our balance sheet," said Tom Albanese, Vedanta's chief executive.
"I am encouraged to see the positive results of our cost reduction programme gaining momentum, and believe that this relentless focus on efficiency will not only make our business more resilient through the cycle but position us favourably for any future improvement in market conditions," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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