Vedanta Resources Reports Mixed 2Q Output; Zinc, Oil, Gas Down

By Alex MacDonald

LONDON--India-focused natural resources firm Vedanta Resources PLC (VED.LN) Monday reported mixed output during the second financial quarter compared with the same period a year ago.

The company's key profit-generating units, oil, gas, and zinc reported lower output while the copper, aluminum, iron ore and power units were higher.

Vedanta, which last month secured shareholder approval to merge its Mumbai-based operating unit with its majority-owned oil and gas unit Cairn India Ltd. (532792.BY), said its share of oil and gas output fell 2% to 11.55 million barrels of oil equivalent in the three months ended Sept. 30 compared with the same period a year earlier.

Refined Indian zinc output also fell 29% on year to 150,000 tons in the second financial quarter while international zinc output dropped 38% to 39,000 tons.

Zinc, oil and gas--the company's top two largest earnings drivers in the last financial year--accounted for 70% of the company's $2.3 billion in earnings before interest taxes, depreciation and amortization or Ebitda for the year ending March 31.

Meanwhile Indian copper output rose 3% on year to 97,000 tons while Zambian copper output dropped 1% on year to 47,000 tons due to the ongoing operations of its Zambian unit.

On a positive note, aluminum output rose 27% on year to 296,000 tons in the second financial quarter while iron ore output rose 78% on year to 0.8 million tons following the ramp up of production in the Indian states of Goa and Karnataka following the repeal of a mining ban there.

Write to Alex MacDonald at [e-mail]

(END) Dow Jones Newswires

October 10, 2016 03:05 ET (07:05 GMT)

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