Vedanta Resources H1 profit down 52% to $26 mn

Vedanta Resources today reported 52 per cent decline in its half-yearly profit for the current fiscal at USD 26 million, despite 6 per cent revenue growth.
The metal, mining, oil and gas major had reported USD 53 million profit for the April-September period of 2013-14.
These figures pertain to "underlying attributable profit", which is calculated after excluding special items and other gains and losses and their resultant tax and minority interest effects.
"The operational highlights of the first half of this financial year are marked, in particular by a recently improving production rate at the Zinc-India, Copper-India and Oil & Gas businesses during the second quarter," said company Chairman Anil Agarwal.

The London Stock Exchange-listed firm clocked 6 per cent rise in revenue to USD 6.5 billion compared to 6.07 billion during the same period a year earlier.
"The increase was partially offset by lower volumes at Zinc India, lower Brent prices, a higher share of profit petroleum payable to the Government and a planned maintenance shutdown at Cairn India," Vedanta Resources said.

EBITDA decreased by 5 per cent to USD 2.1 billion, due to lower volume and higher cost at Konkola Copper Mine in Zambia and Oil and Gas, its Australian mine being placed on care and maintenance which more than offset higher LME price and premia in Zinc and Aluminium.

"The volumes at Zinc India and Oil and Gas are expected to improve in the second half due to mine sequencing and higher plant availability respectively," it said.
Net debt of the company increased by USD 1.1 billion, driven by Cairn India share buyback of 1.75 per cent for USD 189.9 million and the acquisition of 4.24 per cent of Sesa Sterlite shares for USD 588.7 million, it said.
"Vedanta's significant presence in India as a leading commodity producer is a key strength as India's prominence on the global economic landscape continues to increase. With a new Government elected to an overwhelming majority on the mandate of economic growth and job creation, India is expected to deliver strong economic growth in the near term," it said.

The company Board has approved the Gamsberg-Skorpion integrated zinc project in which it plans to invest USD 0.8 billion over three years, to develop the Gamsberg mine with a capacity of 250 ktpa, and convert the Skorpion refinery to handle 150 ktpa of ore from Gamsberg.
Gamsberg is one of the world's largest undeveloped zinc deposits and zinc has attractive fundamentals as several large global mines reach the end of their lives.