TIDMVED
RNS Number : 2750X
Vedanta Resources PLC
20 February 2017
Vedanta Resources plc
16 Berkeley Street
London W1J 8DZ
Tel: +44 (0) 20 7499 5900
Fax: +44 (0) 20 7491 8440
www.vedantaresources.com
20(th) February 2017
Vedanta Resources Plc
Production and Financial Release for the Third Quarter
And Nine months ended 31(st) December 2016
Production figures were announced on 16(th) January 2017. This
release contains financial and other updates.
Q3 Highlights
Financial
-- Revenue and EBITDA up significantly, reflecting benefits of
higher commodity prices and production volumes
-- Robust EBITDA margin(1) of 38%
-- Gross debt lower by $300mn in Q3
Corporate
-- Successful bond issuance of US$1 billion in January 2017 to
pro-actively refinance and extend part of the 2018 and 2019 bond
maturities at Vedanta Resources plc
-- S&P upgraded rating to B+ with stable outlook in January
-- Vedanta Limited - Cairn India merger approved by all sets of
shareholders in September 2016; expected to complete in Q1
CY2017
Operations
-- Zinc India:
-- Mined metal production up 44% q-o-q in line with mine
plan
-- Integrated metal production increased q-o-q: zinc 38%, lead
26% and silver 10%
-- Environment clearances received for expansion of Zawar and
Sindesar Khurd mines
-- Aluminium:
-- Continued ramp up of Jharsuguda-II and BALCO-II smelters;
third line of the 1.25 mtpa Jharsuguda-II smelter commenced ramp up
in December 2016
-- Supply of coal has commenced from the 6mtpa coal linkages
secured earlier this year
-- Power:
-- 1,980MW TSPL plant fully operational with 77% plant
availability
-- Oil & Gas:
-- Mangala EOR with production level of 55,000 barrels per day
6% higher
q-o-q
-- Rajasthan production impacted by planned shutdown at the
Mangala processing terminal
-- Iron Ore:
-- Achieved full year production cap in January at Goa (5.5mt)
and Karnataka (2.3mt)
-- Received further allocation of 3mt in Goa for FY2017
-- Copper - Zambia:
-- Lower integrated volumes due to lower equipment availability
and lower grades
Tom Albanese, Chief Executive Officer, Vedanta Resources plc,
said: "We have made substantial operational progress during the
quarter with ramp up of our Aluminium, Power and Iron Ore
capacities. We are very excited about our Gamsberg Zinc project in
South Africa where first ore is expected in mid-2018. At KCM, we
are committed to the turnaround of this asset and continue to work
towards it. Our rising capacity utilizations and the continued
focus on costs, alongside stronger commodity prices, enabled us to
deliver 79% higher EBITDA and strong free cash flow.
In line with our stated financial strategy to extend near-term
maturities and optimise the balance sheet, we successfully issued a
$1bn USD bond in January 2017 to proactively refinance part of our
2018 and 2019 bond maturities. We are pleased with the strong
demand these bonds received, with support from all major markets."
(1)
Excluding custom smelting at Zinc India and Copper
operations
Oil & Gas
Q3 Q2 Nine months ended
---------------------- ---------------------------- ------------------- -----------------------------
Particulars FY2017 FY2016 % FY2017 % change FY2017 FY2016 %
change QoQ change
YoY YoY
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
OIL AND GAS
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Average Daily
Total Gross
Operated Production
(boepd) (1) 191,230 211,843 (10)% 206,230 (7)% 201,286 214,663 (6)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Average Daily
Gross Operated
Production
(boepd) 181,818 202,668 (10)% 196,399 (7)% 191,674 205,909 (7)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Rajasthan 154,272 170,444 (9)% 167,699 (8)% 162,957 170,258 (4)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Ravva 18,172 21,703 (16)% 18,823 (3)% 18,874 25,430 (26)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Cambay 9,375 10,521 (11)% 9,877 (5)% 9,843 10,221 (4)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Average Daily
Working Interest
Production
(boepd) 115,829 128,402 (10)% 125,575 (8)% 122,254 128,991 (5)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Rajasthan 107,990 119,311 (9)% 117,390 (8)% 114,070 119,180 (4)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Ravva 4,089 4,883 (16)% 4,235 (3)% 4,247 5,722 (26)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Cambay 3,750 4,208 (11)% 3,951 (5)% 3,937 4,089 (4)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Total Oil
and Gas (million
boe)
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Oil & Gas-
Gross 16.73 18.65 (10)% 18.07 (7)% 52.71 56.62 (7)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Oil & Gas-Working
Interest 10.66 11.81 (10)% 11.55 (8)% 33.62 35.47 (5)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Brent (US$/bbl) 49.3 43.8 13% 45.9 8% 46.9 51.9 (10)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Average Price
Realisation 41.
(US$/boe) 46.0 35.2 31% 41.7 10% 9 45.0 (7)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Oil - US$/bbl 46.2 35.0 32% 41.7 11% 41.9 45.1 (7)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Gas - US$/mscf 5.9 7.2 (18)% 7.5 (21)% 7.0 6.9 1%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Revenue (US$
million) 318.7 307.8 4% 304.4 5% 904.6 1,063.1 (15)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
EBITDA (US$
million) 158.2 95.5 66% 154.8 2% 432.1 469.2 (8)%
---------------------- -------- -------- -------- -------- --------- -------- --------- --------
Third quarter FY 2017 vs. previous quarters
For Q3 FY2017, average gross production across assets was lower
at 181,818 barrels of oil equivalent per day (boepd), primarily due
to planned maintenance shutdown in Rajasthan and natural decline in
offshore assets.
Gross production from the Rajasthan block averaged 154,272 boepd
for the quarter, lower mainly due to the planned maintenance
shutdown at the Mangala Processing Terminal which will help
maintain asset integrity and improve the plant performance.
We had encouraging results from the Mangala Enhanced Oil
Recovery (EOR), driven by enhanced well productivity and production
optimization activities. The production from EOR increased to an
average of 55 kboepd in Q3 FY2017 from 52 kboepd in Q2 FY2017.
Continued reservoir management including production optimization
helped maintain steady production from Bhagyam and Aishwariya.
Gross production from Development Area-1 (DA-1) and Development
Area-2 (DA-2) averaged 141,177 boepd and 13,095 boepd,
respectively.
The water-flood operating cost in Rajasthan was at US$ 4.3/boe
in Q3 FY2017 compared to US$ 3.9/boe in Q2 FY2017. The increase was
primarily due to lower volume owing to the planned shut-down in
November 2016, which was partially offset through optimization of
costs for crude processing and work-over activities. Q3 FY2017
blended operating cost including polymer-flood was US$ 6.3/boe
compared to US$ 5.8/boe in Q2 FY2017. We continue to focus on
optimisation of polymer cost and higher captive power generation
while maintaining the injection of polymer at the target level of
400 kblpd.
Production from Ravva and Cambay was steady q-o-q at 18,172 and
9,375 boepd, respectively. Production optimization activities
helped offset some of the natural decline in the blocks. The Ravva
and Cambay facilities recorded an excellent uptime of 99.9% and
99.8%, respectively.
Gas production from RDG was lower at an average of 21 mmscfd in
Q3 FY2017 compared to 33 mmscfd in Q2 FY2017. Gas sales also
declined quarter-on-quarter to 4 mmscfd from 17 mmscfd. The sales
have been temporarily suspended due to a technical issue between
the gas transporter and the buyers. Cairn is closely engaged with
various stakeholders to address the issue and enable the resumption
of the sales at the earliest.
In Q3 FY2017, revenue increased by 4% y-o-y mainly due to higher
oil realization which was partly offset by lower volumes due to a
planned shutdown. Overall oil realization increased by 32% y-o-y to
US$ 46.2/bbl, primarily due to higher brent prices by 13% y-o-y and
also strengthened by lower discount to Brent realised for our oil.
Discount to Brent on Rajasthan crude in Q3 was at 6.9%.
EBITDA was 66% higher y-o-y due to higher oil prices, lower
discount, and lower opex despite shutdown (Q3 water flood opex of
$4.3/boe and blended opex of $6.3/boe vs. Q3 FY2016 water flood
opex of $5.1/boe and blended opex of $6.9/boe).
Nine months FY 2017 vs. nine months FY 2016
Gross production declined 7% y-o-y primarily due to lower
volumes from offshore assets and planned maintenance shutdown in
Rajasthan during the current year, partially offset by volume ramp
up from Mangala EOR and continued effective reservoir management
across assets.
Revenue and EBITDA were 15% and 8% lower respectively, compared
to the nine month period last year, mainly due to lower brent
prices and volumes.
Zinc India
Particulars Q3 Q2 Nine months
ended
---------------------- --------------------------- -------------------------------
FY2017 FY2016 % change FY2017 % change FY2017 FY2016 % change
YoY QoQ YoY
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Zinc India(kt)
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Mined metal
content 276 228 21% 192 44% 595 700 (15)%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Refined Zinc
- Total 205 206 0% 150 37% 457 605 (24)%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Refined Zinc
- Integrated 205 206 0% 149 38% 456 605 (25)%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Refined Zinc
- Custom - - - 1 - 1 - 0%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Refined Lead
- Total (2) 39 35 10% 31 26% 94 107 (12)%
---------------------- ------- --------- ------- --------- --------- ---------
Refined Lead
- Integrated 39 35 10% 31 26% 94 102 (8)%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Refined Lead - - - - - - 5 -
- Custom
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Silver - Total
(in mn ounces)
(3) 3.79 3.73 2% 3.45 10% 10.08 9.73 4%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Silver- Integrated
(in mn ounces) 3.79 3.73 2% 3.45 10% 10.08 9.64 5%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Silver- Custom - - - - - - 0.09 -
(in mn ounces)
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Average LME -
Zinc (US$/t) 2,517 1,613 56% 2,255 12% 2,230 1,878 19%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Average LME -
Lead (US$/t) 2,149 1,681 28% 1,873 15% 1,913 1,776 8%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Average Silver
Prices (US$/oz) 17.2 14.8 16% 19.6 (12)% 17.9 15.3 17%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Zinc COP (US$/t)
(8) 861 796 8% 809 6% 852 789 8%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Revenue (US$
million) 731.4 508.7 44% 507.8 44% 1,604.1 1,659.2 (3)%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
EBITDA (US$ million) 406.4 217.8 87% 295.9 37% 862.5 799.7 8%
---------------------- ------- ------- --------- ------- --------- --------- --------- ---------
Third quarter FY 2017 vs. previous quarters
Mined metal production was 276,000 tonnes, 21% higher compared
to Q3 FY2016 and 44% higher sequentially. The sequential increase
was on account of higher volumes from Rampura Agucha open cast mine
in accordance with mine plan and the y-o-y increase was driven by
higher volumes from Rampura Agucha underground as well as open cast
mines. We are on track to achieve stated guidance of higher mined
metal production in FY2017 compared to FY2016.
Integrated zinc metal production during the quarter was at
205,000 tonnes, up 38% from the previous quarter, and flat y-o-y on
account of accretion of mined metal inventory. Integrated saleable
lead production during the quarter was 39,000 tonnes, up 26%
sequentially and 10% y-o-y. The y-o-y increase was in line with
mined metal production, while the sequential increase was on
account of enhanced smelter efficiencies. Integrated silver
production during the quarter increased by 10% to 3.79 million
ounces from previous quarter and 2% y-o-y.
In line with the on-going expansion to reach 1.2 mtpa mined
metal production capacity, environmental clearances were received
for Sindesar Khurd expansion of ore production capacity from 3.75
mtpa to 4.5 mtpa and for Zawar mine to 4 mtpa.
The cost of production excluding royalty was higher at US$ 861
per tonne compared to US$ 796 per tonne in Q3 FY2016 and US$ 809
per tonne in Q2 FY2017. The increase was primarily on account of
additional excavation at Rampura Agucha underground, change in
global waste to ore ratio, higher mine development, input commodity
inflation (primarily coal and met coke), and lower by-product
credits driven by lower sulphuric acid prices, which were partially
offset by higher volumes, better average grades and cost
optimization initiatives in procurement and commercial
functions.
Q3 FY2017 revenue was US$ 731 million, 44% higher y-o-y mainly
on account of higher LME prices and higher volumes. EBITDA in Q3
FY2017 was US$ 406 million, an increase of 87% compared to Q3
FY2016 mainly due to higher realized LME. Further the costs were
helped with rupee depreciation and cost optimization initiatives
across the procurement and commercial functions.
Nine months FY 2017 vs. nine months FY 2016
Mined metal production during the nine month period was 15%
lower y-o-y. This was in line with the earlier guidance of
substantially higher mined metal production in H2, and Q4
production will be higher than Q3. Integrated silver production was
higher by 5% y-o-y primarily due to higher volume from our
silver-rich Sindesar Khurd mine. During the nine month period,
underground mines ramped up significantly to achieve a substantial
60% y-o-y increase in ore production and 55% y-o-y increase in
mined metal production. Revenue for the nine month period was US$
1,604 million, 3% lower mainly due to lower volume which was
partially offset by higher LME prices. EBITDA was US$ 863 million,
higher by 8% mainly due to higher realized prices and one off
renewable power obligation charges provided in FY2016 for the
previous years which was partially offset by lower volumes.
FY2017 mined metal production is expected to be higher than
FY2016, in line with earlier guidance. However, integrated zinc
metal production is expected to be lower than FY2016 in accordance
with the low availability of mined metal in H1. CoP is expected to
be marginally higher than FY2016.
Zinc - International
Q3 Q2 Nine months
ended
---------------------- --------------------------- ------------------ ---------------------------
Particulars (in'000 FY2017 FY2016 % change FY2017 % change FY2017 FY2016 % change
tonnes, or as YoY QoQ YoY
stated)
---------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Zinc International 33 51 (35)% 39 (17)% 115 184 (38)%
---------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Zinc -refined
-Skorpion 17 13 34% 23 (25)% 64 55 16%
---------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Mined metal content
- BMM 15 17 (11)% 16 (5)% 51 48 5%
---------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Mined metal content
- Lisheen - 21 - - - - 81 -
---------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Average LME -
Zinc (US$/tonne) 2,517 1,613 56% 2,255 12% 2,230 1,878 19%
---------------------- ------- ------- --------- ------- --------- ------- ------- ---------
CoP including
Royalty (US$/tonne) 1,615 1,579 2% 1,446 12% 1,412 1,475 (4)%
---------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Revenue(US$ million) 87.1 64.3 35% 102.3 (15)% 257.1 308.8 (17)%
---------------------- ------- ------- --------- ------- --------- ------- ------- ---------
EBITDA(US$ million) 29.7 (0.2) - 51.0 (42)% 118.1 56.4 -
---------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Third quarter FY 2017 vs. previous quarters
Total production for Q3 FY2017 was 33,000 tonnes, 35% lower
y-o-y primarily due to the closure of the Lisheen mine in November
2015, following 17 years of successful operations. Q3 FY2017
production excluding Lisheen was 9% higher y-o-y. Production was
17% lower q-o-q mainly due to technical issues at Skorpion and BMM
which necessitated some production rescheduling.
Skorpion production during the quarter was 17,000 tonnes, 34%
higher y-o-y but 25% lower q-o-q, due to increased upstream
material handling challenges to treat wetter than anticipated ore
through the refinery. In Q3 FY2016, Skorpion production had been
impacted by the extended planned 30-day maintenance shutdown. BMM
production for the quarter was 15,000 tonnes, 11% lower y-o-y and
5% lower q-o-q, primarily due to lower equipment availability.
At the Gamsberg Project, pre-start activities and
waste-stripping is progressing well. To date, we have excavated
over 13 million tonnes of waste rock, of which 2mt was in Q3. 75%
of project costs have been committed to date with major orders for
the mining contract, the concentrator plant and power and water
connections placed. The balance of orders for equipment are planned
to be placed in Q4 FY2017. First production is on track for mid
CY2018, with 9-12 months for ramp up to full production of 250
ktpa. The expected COP at Gamsberg is $1,000-$1,150 per tonne.
During Q3 FY2017, the average cost of production including
royalty was US$ 1,615 per tonne, 7% lower compared to US$1,737 per
tonne in Q3 FY2016 (excluding Lisheen). Reduction in cost was
primarily on account of higher volumes from Skorpion and local
currency depreciation.
EBITDA at US$30 million was significantly higher y-o-y, mainly
driven by higher LME and improved volumes at Skorpion.
Nine months FY 2017 vs. nine months FY 2016
Total production was 115,000 tonnes, 38% lower compared to
corresponding prior period mainly due to closure of the Lisheen
mine. Production volume from Skorpion and BMM was up by 16% and 5%,
respectively. During the period, revenue was US$ 257 million, 17%
lower, primarily on account of lower production which was partially
offset by higher LME prices. EBITDA for the period was US$ 118
million, significantly higher primarily on account of higher LME
and a one-off insurance claim refund, which was partly offset by
lower volumes driven by the Lisheen mine closure.
FY2017 volume is expected to be at 160kt and Q4 CoP estimated at
$1200-$1250/t.
Iron Ore
Q3 Q2 Nine months
ended
--------------------- --------------------------- ------------------ ---------------------------
Particulars FY2017 FY2016 % change FY2017 % change FY2017 FY2016 % change
(in million YoY QoQ YoY
dry metric tonnes,
or as stated)
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
IRON ORE
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Sales 3.7 1.5 - 0.8 - 7.1 2.7 -
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Goa 2.7 0.6 - 0.3 - 5.1 0.6 -
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Karnataka 1.0 0.9 4% 0.5 - 2.0 2.1 (6)%
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Production of
Saleable Ore 2.6 1.4 - 1.5 - 7.3 2.4 -
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Goa 2.3 0.3 - 0.5 - 5.2 0.3 -
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Karnataka 0.4 1.1 (66)% 0.9 (60)% 2.1 2.1 3%
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Production ('000
tonnes)
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Pig Iron 154 146 5% 192 (20)% 526 466 13%
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Revenue(US$
million) 208.8 81.7 - 73.1 - 426.9 219.5 94%
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
EBITDA(US$ million) 63.0 11.1 - 17.7 - 134.6 18.3 -
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Third quarter FY 2017 vs. previous quarters
At Goa, production was 2.3 million tonnes and sales were 2.7
million tonnes during the quarter. Mining activities resumed post
the monsoon season, and hence production was significantly higher
sequentially. At Karnataka, production was 0.4 million tonnes and
sales were 1.0 million tonnes. Sales were higher than production at
both Goa and Karnataka due to sales from opening inventory.
During Q3 FY2017, production of pig iron was 5% higher y-o-y at
154,000 tonnes due to higher plant availability post
debottlenecking. Production was 20% lower q-o-q primarily due to
the maintenance shutdown for relining one of the furnaces for about
35 days in Q3 FY2017.
Our annual mining allocation of 5.5mt and 2.3mt for Goa and
Karnataka, respectively, was achieved in January 2017. We have been
engaged with the respective state governments for an increase in
the mining caps. The Goa government has granted additional mining
allocation to us for the current fiscal year, and we expect to
produce an additional 3mt this year.
Revenue for the quarter was at US$ 209 million, significantly
higher compared to Q2, primarily due to the ramp up at Goa in Q3
post monsoon and higher iron ore prices. Price realization at Goa
in Q3 FY2017 was US$ 40.7 per tonne compared to US$ 32.5 per tonne
in Q2 FY2017. Price realization at Karnataka was at US$ 17.3 per
tonne in Q3 compared with US$ 12.1 per tonne in Q3 last year.
EBITDA was US$ 63 million in Q3 FY2017, in line with higher
revenue driven by volume ramp-up.
Nine months FY 2017 vs. nine months FY 2016
Production at Goa was 5.2 million tonnes and sales were 5.1
million tonnes. At Karnataka, production was 2.1 million tonnes and
sales were 2.0 million tonnes. Production of pig iron ramped up to
a record of 526,000 tonnes due to higher plant availability post
debottlenecking. During the period, iron ore sales volume was 7.1
million tonnes primarily due to recommencement of Goa mining
operations resulting in higher revenue and EBITDA.
Copper - India
Q3 Q2 Nine months
ended
-------------------- -------------------------- ----------------- -------------------------------
Particulars FY2017 FY2016 % FY2017 % FY2017 FY2016 % change
(in'000 tonnes, change change YoY
or as stated) YoY QoQ
-------------------- ------- ------- -------- ------- -------- --------- --------- ---------
COPPER- INDIA
-------------------- ------- ------- -------- ------- -------- --------- --------- ---------
Copper - Cathodes 102 89 15% 97 5% 300 282 6%
-------------------- ------- ------- -------- ------- -------- --------- --------- ---------
Tuticorin
Power Sales
(MU) 46 40 15% 30 55% 136 334 (59)%
-------------------- ------- ------- -------- ------- -------- --------- --------- ---------
Realized TC/RC
(USc/lb) 22.2 23.5 (6)% 20.5 8% 21.9 23.9 (8)%
-------------------- ------- ------- -------- ------- -------- --------- --------- ---------
Conversion
cost (USc/lb) 3.9 4.4 (11)% 5.3 (26)% 5.0 3.1 61%
-------------------- ------- ------- -------- ------- -------- --------- --------- ---------
Revenue(US$
million) 769.0 686.9 12% 699.7 10% 2,164.2 2,383.4 (9)%
-------------------- ------- ------- -------- ------- -------- --------- --------- ---------
EBITDA(US$
million) 66.8 91.3 (27)% 60.5 10% 193.1 261.5 (26)%
-------------------- ------- ------- -------- ------- -------- --------- --------- ---------
Third quarter FY 2017 vs. previous quarters
The Tuticorin smelter produced 102,000 tonnes of cathodes during
Q3 FY2017, up 15% y-o-y. During Q3 FY2016, volumes had been lower
on account of flooding in the state and unplanned shutdowns.
The 160 MW power plant at Tuticorin operated at a plant load
factor (PLF) of 56% during Q3 FY2017 (PLF of 52% in Q3 FY2016, 48%
during Q2 FY2017). PLF was low due to lower off-take by the
Telangana State Electricity Board (TSEB). However, as per our
offtake agreement with TSEB, we are entitled to compensation at the
rate 20% of the contracted rate, for off-take below 85% of the
contracted quantity.
In Q3 FY2017, Tc/Rc's were at USc 22.2 per lb, 6% lower compared
to Q3 FY2016 and 8% higher compared to Q2 FY2017. This was in line
with movement in global benchmark Tc/Rc rates. Tc/Rc realization
for CY 2017 is expected to be c.5% lower at c. USc 21/lb.
The net cost of conversion in Q3 FY2017 was USc 3.9 per lb,
compared to USc 4.4 per lb in Q3 FY2016 and USc 5.3 per lb in Q2
FY2017. The net cost of conversion was lower primarily due to
better acid prices during the current quarter.
Revenue for the quarter was at US$ 769 million lower mainly due
to lower LME.
Q3 EBITDA was US$ 67 million, lower mainly due to lower Tc/Rc
and lower by-product credits.
Nine months FY 2017 vs. nine months FY 2016
Production volume from the Tuticorin smelter was 300,000 tonnes
of cathodes, higher by 6% compared to the corresponding prior
period. The 160MW power plant at Tuticorin operated at a PLF of 55%
in the first nine months of FY2017 compared to 95% in corresponding
prior period, primarily due to lower offtake from Tamil Nadu
Electricity Board (TNEB) and TSEB. The power purchase agreement
with TNEB ended on 31(st) May 2016 post which we entered into an
agreement with TSEB.
Revenue for the nine month period FY2017 was US$ 2,164 million,
9% lower compared to nine month period FY2016, primarily on account
of lower LME. During the period EBITDA was US$ 193 million, 26%
lower primarily due to lower Tc/Rc and lower sulphuric acid credits
which was partially offset by higher volumes. This was also
adversely impacted by one off export incentive scheme benefit
recognized last year and lower EBITDA from the 160MW power plant
due to lower power offtake.
Copper - Zambia
Q3 Q2 Nine months
period
------------------- --------------------------- ------------------ ----------------------------
Particulars FY2017 FY2016 % change FY2017 % change FY2017 FY2016 % change
(in'000 tonnes, YoY QoQ YoY
or as stated)
------------------- ------- ------- --------- ------- --------- ------- -------- ---------
COPPER -ZAMBIA
------------------- ------- ------- --------- ------- --------- ------- -------- ---------
Mined metal 21 32 (33)% 29 (27)% 79 94 (16)%
------------------- ------- ------- --------- ------- --------- ------- -------- ---------
Copper - Total 37 45 (18)% 47 (20)% 130 136 (5)%
------------------- ------- ------- --------- ------- --------- ------- -------- ---------
Integrated 21 28 (25)% 28 (23)% 77 89 (14)%
------------------- ------- ------- --------- ------- --------- ------- -------- ---------
Custom 16 17 (7)% 19 (16)% 53 47 11%
------------------- ------- ------- --------- ------- --------- ------- -------- ---------
Average LME
- Copper (US$/t) 5,277 4,892 8% 4,772 11% 4,924 5,387 (9)%
------------------- ------- ------- --------- ------- --------- ------- -------- ---------
C1 cash cost
(USc/lb) 194 175 11% 169 15% 187 199 (6)%
------------------- ------- ------- --------- ------- --------- ------- -------- ---------
Revenue (US$
million) 205.8 195.5 5% 209.8 (2)% 610.4 720.6 (15)%
------------------- ------- ------- --------- ------- --------- ------- -------- ---------
EBITDA (US$
million) 0.7 10.8 (94)% 13.4 (94)% 17.9 (13.5) -
------------------- ------- ------- --------- ------- --------- ------- -------- ---------
Third quarter FY 2017 vs. previous quarters
During Q3, mined metal production was 21,000 tonnes, 33% lower
y-o-y, due to lower production from Nchanga underground which was
placed on managed care and maintenance in Q3 FY2016, lower
trackless equipment availability at Konkola mine, throughput
constraints at the mills and lower feed from reclaimed tails at
Tailings Leach Plant.
During Q3, we commenced trial mining at the Nchanga underground
mine and initial results for recovery and mining productivity are
promising. The plan is to ramp-up the annual ore production to a
rate in excess of 2 million tonnes.
Custom volumes at 16,000 tonnes were 7% lower on a y-o-y basis
and 16% lower compared to the prior quarter. Production was
primarily impacted by a biennial shutdown of the smelter for 40
days, which commenced on 26 September 2016. Operations have
recommenced post the shutdown and the smelter availability has
improved to 98% with the ability to handle feed rates of greater
than 90 tonnes per hour compared to 70 tonnes per hour prior to the
shutdown.
We are working on the engineering design for accelerated
dewatering and development to increase production from Konkola
Mine.
The elevated temperature leach project, which would improve
recoveries at the Tailings Leach Plant, has been commissioned in Q3
and is currently under stabilisation. The initial recovery results
are encouraging.
In Q3 FY 2017, cost of production excluding royalty and
exceptional items of increased power tariff in January 2016 and
unrealized gains/losses on Kwacha denominated VAT receivables, was
USc 176/lb which is lower by 4% on y-o-y basis. Factors
contributing to this include sustained operational cost-saving
initiatives, renegotiation of commercial contracts and alternate
sourcing for major bulk supplies. Cost of production excluding
royalty was USc 194/lb compared to USc 175/lb for Q3 FY2016 mainly
on account of increase in power cost in FY2017 and appreciation of
Zambian Kwacha during Q3 FY2016.
The power tariff increase in January 2016 resulted in an adverse
impact of US$ 3 million per month on the cost of production. In Q3
FY2017, power cost increase was USc 18/lb y-o-y. The company is
working on a range of possible solutions to reduce the cost of
power including new technical intervention to put oil-fired boilers
as an alternate to power for electrolyte heating at refinery.
Revenue for the period was US$206 million, 5% higher due to
increase in realized LME prices partly offset by lower volumes.
EBITDA for Q3 FY2017 was US$0.7 million, significantly lower y-o-y
mainly due to lower volumes.
In January 2017, KCM has successfully signed off a consent order
with ZCCM-IH to settle its price participation liability which
outlines the amended schedule of repayment in three parts, being
US$20 million by 31 January 2017, US$22 million by 28 February 2017
and the balance in 24 equal monthly instalments which is a
progressive step towards amicable settlement of the case.
Water levels at Kariba Dam are improving and are currently at
26% compared with 22% at the end of H1 FY2017. Copper belt Energy
Corporation Plc has recently announced revised power tariffs
effective from 1 Jan 2017 which are 15% lower than the last tariffs
that were announced in January 2016. The process of formalization
of tariff change is now underway across the mining industry.
Production in Q4FY2017 is expected to be in line with Q3.
Nine months FY2017 vs nine months FY2016
Mined metal production was at 79,000 tonnes, 16% lower y-o-y and
integrated volume was at 77,000 tonnes, lower compared to mined
metal production due to an increase in the concentrate inventory.
Custom volumes were at 53,000 tonnes, 11% higher compared to nine
months ended 31 December 2015 despite the 40 days planned
maintenance shutdown.
During the period, revenue was US$ 610 million, 15% lower mainly
due to lower realized LME and lower volumes. EBITDA was US$ 18
million, higher mainly on account of unrealized loss on Kwacha
denominated VAT receivables in the previous year partially offset
by lower volume and lower realized LME during the current
period.
Amendments to The Mines & Mineral Development Act 2015 were
formalized on 6 June 2016. This provides for a 'sliding scale'
royalty rate with effect from 1 June 2016. Accordingly, there is a
4% royalty at a copper LME of < US$4,500 per tonne, 5% royalty
at a copper LME between US$4,500 and US$6,000 per tonne and 6%
royalty at a copper LME >US$6,000 per tonne.
Aluminium
Q3 Q2 Nine months
period
------------------------ --------------------------- ------------------ -----------------------------
Particulars(in'000 FY2017 FY2016 % change FY2017 % change FY2017 FY2016 % change
tonnes, or as YoY QoQ YoY
stated)
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Aluminium
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Alumina-Lanjigarh 328 218 50% 292 12% 895 760 18%
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Total Aluminium
Production 319 234 37% 296 8% 860 697 23%
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Jharsuguda-I 132 131 1% 132 0% 393 392 0%
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Jharsuguda-II
(4) 84 19 - 48 75% 161 57 -
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Korba-I 65 65 0% 63 3% 192 192 0%
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Korba-II (5) 38 19 - 52 (27)% 115 56 -
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Balco 270 MW - - - - - - -
(6)
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Jharsuguda 1800
MW (Surplus Power
Sales in Million
Units) (6) - - - 156 - 511 - -
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Average LME -
Aluminium (US$/tonne) 1,710 1,495 14% 1,620 6% 1,634 1,615 1%
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Average CoP -
Aluminium (US$/tonne) 1,429 1,528 (7)% 1,462 (2)% 1,452 1,620 (10)%
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Revenue(US$ million) 531.9 418.9 27% 452.1 18% 1,396.0 1,270.4 10%
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
EBITDA(US$ million) 95.0 20.9 - 62.8 51% 197.1 42.6 -
------------------------ ------- ------- --------- ------- --------- -------- -------- ---------
Third quarter FY 2017 vs. previous quarters
The first line of the 1.25 mtpa Jharsuguda-II smelter was
impacted by a transformer failure incident in mid- January.
Rectification work is in process and 80 pots of the 336 pots are
currently operational. The first line is expected to be ramped up
by Q1 FY2018 post rectification. The second line is fully ramped up
and is expected to be capitalised in Q4 FY2017. The ramp up of the
third line of the smelter has commenced in end December 2016, with
42 pots operational and is expected to be fully ramped up by Q2
FY2018.
The 325kt BALCO-II smelter had been impacted by a pot failure
incident in Q2 FY2017. 257 pots of the 336 pots are currently
operational and full ramp-up of the smelter is expected by Q1
FY2018. The rolled product facility at BALCO, which was temporarily
shut-down last year, successfully re-commenced its operations in Q2
FY2017 following optimisation of its cost structure, and produced
6,100 tonnes during the quarter.
The two streams of the Lanjigarh refinery operated during the
quarter and produced 328,000 tonnes in Q3 FY2017, 12% higher than
Q2 FY2017. The refinery currently has a debottlenecked capacity of
1.7 - 2.0 million tonnes per annum and we expect to produce 1.3mt
in FY2017 to offset high alumina import prices.
There were no external sales from the 1,800 MW Jharsuguda power
plant due to a weak power market. However, the PLF's will continue
to increase as we ramp up the Jharsuguda-II smelter.
Coal linkages of 6mtpa had been secured through auctions in Q2
FY2017 for captive power plants. Supply has commenced from these
linkages in November 2016.
The cost of production of hot metal was US$1,429 per tonne with
Jharsuguda and Korba at US$1,388 per tonne and US$1,499 per tonne
respectively, lower y-o-y and q-o-q. The cost was lower q-o-q due
to lower power and other costs which were partially offset by
higher alumina import prices (Alumina CoP was $265/t with bauxite
from BALCO and purchased bauxite, vs. $304/t for imported
alumina).
EBITDA for the quarter was US$95 million, significantly higher
q-o-q due to higher realized LME prices, volume ramp-up and rupee
depreciation.
We expect to produce between 1.0 to 1.1 mtpa of Aluminium
(excluding trial run production) in FY2017. Q4FY2017 CoP is
expected to be at $1450-1475/t. The bauxite mines at BALCO are
ramping up production and expect to exit FY2017 with a run rate of
2mtpa.
Nine months FY2017 vs nine months FY2016
Aluminium production was a record at 860,000 tonnes, 23% higher
y-o-y mainly on account of ramp up of additional pots at the
BALCO-II and Jharsuguda-II smelters. Alumina production was 18%
higher at 895,000 tonnes, due to the commencement of the second
stream of the refinery from 1(st) April 2016. During this period,
revenue was US$ 1,396 million, higher by 10% compared to
corresponding prior period. EBITDA was at US$ 197 million
significantly higher due to volume ramp-up, higher realized LME,
lower input commodity prices and various cost saving
initiatives.
Power
Q3 Q2 Nine months
ended
----------------------- --------------------------- ------------------ ---------------------------
Particulars FY2017 FY2016 % change FY2017 % change FY2017 FY2016 % change
(in million YoY QoQ YoY
units)
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Power
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Total Power
Sales 3,413 2,934 16% 3,030 13% 9,453 8,728 8%
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Jharsuguda
600 MW (6) 879 1,593 (45)% 605 45% 2,376 5,413 (56)%
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Balco 600
MW 660 368 79% 549 20% 1,817 526 -
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Balco 270
MW(6) - 41 - - - - 169 -
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
MALCO 29 26 12% 25 16% 144 345 (58)%
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
HZL Wind
Power 53 67 (22)% 172 (69)% 373 353 6%
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
TSPL 1,792 839 - 1,679 7% 4,743 1,922 -
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
TSPL - Availability 77% 85% - 77% - 76% 77% -
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Revenue (US$
million) 227.4 175.0 30% 206.7 10% 610.8 517.5 18%
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
EBITDA (US$
million) 67.4 45.4 48% 56.7 19% 175.3 138.1 27%
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Third quarter FY 2017 vs. previous quarters
Total power sales were higher y-o-y due to the commissioning of
additional power units at TSPL and BALCO over the last one
year.
Power sales from TSPL increased with all three units being
operational. In Q3 FY2017, the three units operated at an
availability of 77%. The Power Purchase Agreement with the Punjab
State Power Corporation Limited (PSPCL) compensates us based on the
availability of the plant.
The Jharsuguda 600MW power plant operated at a plant load factor
(PLF) of 72% in Q3 FY2017 (PLF 66% in Q3 FY2016, 50% in Q2
FY2017).
The 600 MW units (2x300MW) of BALCO IPP operated at a PLF of 55%
in Q3 FY2017 due to a weaker power market (PLF 54% in Q2
FY2017)
PLF at the MALCO power plant was at 15%, lower due to lower
off-take by the Telangana State Electricity Board (TSEB). However,
as per the contract entered into with TSEB, we are entitled to
compensation at 20% of the contracted rate for off-take below 85%
of the contractual quantity.
Average power realisation for Q3 FY2017, excluding TSPL, was INR
2.77 per unit (USc 4.11 per unit) compared with INR 2.88 per unit
(USc 4.37 per unit) in Q3 FY2016. The NSR was lower compared to
corresponding prior quarter on account of weaker demand, resulting
in a lower power price environment in India. Average power CoP,
excluding TSPL, for Q3 FY2017 was INR 2.10 per unit (USc 3.11 per
unit) compared to INR 2.21 per unit (USc 3.35 per unit) in Q3
FY2016.
Realisation and CoP of TSPL was at INR 3.32 per unit and INR
2.34 per unit respectively based on declared plant availability of
77%.
Revenue for the quarter was US$ 227 million, 30% higher y-o-y
and EBITDA was US$ 67 million, 48% higher y-o-y mainly driven by
commissioning of additional units at TSPL and Balco.
Nine months FY2017 vs nine months FY2016
Power sales were higher by 8% compared with corresponding prior
period due to commissioning of additional units at TSPL and BALCO
power plants.
Revenue for the period was US$ 611 million, 18% higher y-o-y and
EBITDA was US$ 175 million, 27% higher driven by volume ramp
up.
Financial Update and Balance Sheet Management
Our financial position remains robust, with total cash and
liquid investments of US$ 7.9 billion and undrawn committed
facilities of US$ 0.5 billion as at 31 December 2016. Gross debt
and net debt were at US$ 16.0 billion and US$ 8.2 billion,
respectively, at 31 December 2016 compared to US$ 16.3 billion and
US$ 8.2 billion, respectively, as at 30 September 2016.
During the quarter, Vedanta Limited repaid $0.3 billion of the
$0.4 billion of outstanding inter-company loan to Vedanta Plc. The
remaining US$0.1 billion was paid off by Vedanta Limited in
January.
In January 2017, Vedanta Resources plc issued $1 billion of
6.375% bonds due 2022 to primarily refinance part of its 2018 and
2019 bond maturities and extend its average debt maturity. $796
million of face value of the 2018 and 2019 bonds was tendered. The
bond issue received strong subscription from investors
globally.
The Group continues to actively manage its maturities and
evaluate various options to optimise and strengthen its balance
sheet, extend its maturity profile and reduce financing costs.
Production Summary (Unaudited)
(In '000 tonnes, except as stated)
Particulars Q3 Q2 Nine months ended
----------------------- --------------------------------- ----------------------- ---------------------------------
FY 2017 FY 2016 % Change YoY FY 2016 % Change QoQ FY 2017 FY 2016 % Change YoY
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
OIL AND GAS
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Average Daily Total
Gross Operated
Production (boepd)
(1) 191,230 211,843 (10%) 206,230 (7)% 201,286 214,663 (6)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Average Daily Gross
Operated Production
(boepd) 181,818 202,668 (10%) 196,399 (7)% 191,674 205,909 (7)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Rajasthan 154,272 170,444 (9%) 167,699 (8)% 162,957 170,258 (4)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Ravva 18,172 21,703 (16%) 18,823 (3)% 18,874 25,430 (26)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Cambay 9,375 10,521 (11%) 9,877 (5)% 9,843 10,221 (4)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Average Daily Working
Interest Production
(boepd) 115,829 128,402 (10%) 125,575 (8)% 122,254 128,991 (5)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Rajasthan 107,990 119,311 (9%) 117,390 (8)% 114,070 119,180 (4)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Ravva 4,089 4,883 (16%) 4,235 (3)% 4,247 5,722 (26)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Cambay 3,750 4,208 (11%) 3,951 (5)% 3,937 4,089 (4)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Total Oil and Gas -
(million boe)
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Oil & Gas- Gross 16.73 18.65 (10%) 18.07 (7)% 52.71 56.62 (7)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Oil & Gas-Working
Interest 10.66 11.81 (10%) 11.55 (8)% 33.62 35.47 (5)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Zinc India
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Mined metal content 276 228 21% 192 44% 595 700 (15)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Refined Zinc - Total 205 206 0% 150 37% 457 605 (24)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Refined Zinc -
Integrated 205 206 0% 149 38% 456 605 (25)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Refined Zinc -
Custom - - - 1 - 1 - 0%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Refined Lead - Total
(2) 39 35 10% 31 26% 94 107 (12)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Refined Lead -
Integrated 39 35 10% 31 26% 94 102 (8)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Refined Lead - - - - - - - 5 -
Custom
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Silver - Total (in
mn ounces) (3) 3.79 3.73 2% 3.45 10% 10.08 9.73 4%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Silver- Integrated
(in mn ounces) 3.79 3.73 2% 3.45 10% 10.08 9.64 5%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Silver- Custom (in - - - - - - 0.09 -
mn ounces)
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Zinc International 33 51 (35)% 39 (17)% 115 184 (38)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Zinc -Refined
-Skorpion 17 13 34% 23 (25)% 64 55 16%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Mined metal content -
BMM 15 17 (11)% 16 (5)% 51 48 5%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Mined metal content -
Lisheen - 21 - - - - 81 -
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
IRON ORE (in million
dry metric tonnes, or
as stated)
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Sales 3.7 1.5 - 0.8 - 7.1 2.7 -
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Goa 2.7 0.6 - 0.3 - 5.1 0.6 -
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Karnataka 1.0 0.9 4% 0.5 - 2.0 2.1 (6)%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Production of Saleable
Ore 2.6 1.4 - 1.5 - 7.3 2.4 -
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Goa 2.3 0.3 - 0.5 - 5.2 0.3 -
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Karnataka 0.4 1.1 (66)% 0.9 (60)% 2.1 2.1 3%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Pig Iron 154 146 5% 192 (20)% 526 466 13%
----------------------- -------- -------- ------------- -------- ------------- -------- -------- -------------
Particulars Q3 Q2 Nine months
ended
----------------------- -------------------------- ----------------- -------------------------
FY FY % Change FY % Change FY FY % Change
2017 2016 YoY 2017 QoQ 2017 2016 YoY
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
COPPER - INDIA
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Copper - Cathodes 102 89 15% 97 5% 300 282 6%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Tuticorin Power
Plant Sales (MU) 46 40 15% 30 55% 136 334 (59)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
COPPER - ZAMBIA
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Mined metal 21 32 (33)% 29 (27)% 79 94 (16)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Copper - Total 37 45 (18)% 47 (20)% 130 136 (5)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Integrated 21 28 (25)% 28 (23)% 77 89 (14)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Custom 16 17 (7)% 19 (16)% 53 47 11%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
ALUMINUM
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Alumina-Lanjigarh 328 218 50% 292 12% 895 760 18%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Total Aluminum
Production 319 234 37% 296 8% 860 697 23%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Jharsuguda-I 132 131 1% 132 0% 393 392 0%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Jharsuguda-II(4) 84 19 - 48 75% 161 57 -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Korba-I 65 65 0% 63 3% 192 192 0%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Korba-II(5) 38 19 - 52 (27)% 115 56 -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Balco 270 MW (6) - - - - - - - -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Jharsuguda 1800
MW (Surplus Power
Sales in Million
Units) (6) - - - 156 - 511 - -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
POWER (in million
units)
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Total Power Sales 3,413 2,934 16% 3,030 13% 9,453 8,728 8%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Jharsuguda 600
MW (6) 879 1,593 (45)% 605 45% 2,376 5,413 (56)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Balco 600 MW 660 368 79% 549 20% 1,817 526 -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Balco 270 MW (6) - 41 - - - - 169 -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
MALCO 29 26 12% 25 16% 144 345 (58)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
HZL Wind Power 53 67 (22)% 172 (69)% 373 353 6%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
TSPL 1,792 839 - 1,679 7% 4,743 1,922 -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
TSPL - Availability 77% 85% - 77% - 76% 77% -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
VGCB Port (in million
tonnes) (7)
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Cargo Discharge 0.6 1.8 (65)% 1.3 (49)% 3.5 5.5 (36)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Cargo Dispatches 0.7 1.9 (65)% 1.5 (56)% 3.6 5.7 (36)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
1. Including Internal Gas consumption
2. Excluding Captive consumption of 1,731 tonnes in Q3 FY2017 vs
2,051 tonnes in Q3 FY2016, 837 tonnes in Q2 FY2017 and 3,652 tonnes
in Nine months ended FY2017 vs. 5,749 tonnes in Nine months ended
FY2016
3. Excluding captive consumption of 463,000 ounces in Q3 FY2017
vs. 344,000 ounces in Q3 FY2016, 139,000 ounces in Q2 FY2017 and
602,000 ounces in Nine months ended FY 2017 vs. 956,000 ounces in
Nine months ended FY 2016
4. Including trial run production of 36 kt in Q3 FY2017, 12 kt
in Q3 FY2016, 19 kt in Q2 FY2017, 67 kt in Nine months ended FY2017
vs 51 kt in Nine months ended FY 2016
5. Including trial run production of 270 tonnes in Q3 FY2017,
Nil in Q3 FY2016, 28 kt in Nine months ended FY2017 vs Nil kt in
Nine months ended FY2016
6. Jharsuguda 1,800MW and Balco 270 MW have been moved from the
power to the Aluminum segment from 1st April 2016
7. Vizag General Cargo Berth
8. Before adjusting revenue from silver
Financial Summary (Unaudited)
(in US$ million, except as stated)
Group Revenue Q3 Q2 Nine months
ended
----------------- ------------------------------- -------------------- -----------------------------
FY 2017 FY 2016 % Change FY % Change FY FY % Change
YoY 2017 QoQ 2017 2016 YoY
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
Zinc 818.6 573.0 43% 610.1 34% 1,861.2 1,968.0 (5)%
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
India 731.4 508.7 44% 507.8 44% 1,604.1 1,659.2 (3)%
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
International 87.1 64.3 35% 102.3 (15)% 257.1 308.8 (17)%
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
Oil and
Gas 318.7 307.8 4% 304.4 5% 904.6 1,063.1 (15)%
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
Iron Ore 208.8 81.7 - 73.1 - 426.9 219.5 94%
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
Copper 974.8 882.4 10% 909.5 7% 2,774.6 3,104.0 (11)%
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
India/
Australia 769.0 686.9 12% 699.7 10% 2,164.2 2,383.4 (9)%
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
Zambia 205.8 195.5 5% 209.8 (2)% 610.4 720.6 (15)%
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
Aluminium 531.9 418.9 27% 452.1 18% 1,396.0 1,270.4 10%
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
Power 227.4 175.0 30% 206.8 10% 610.8 517.5 18%
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
Others (12.7) (3.5) - (28.8) (56)% (38.8) (7.7) -
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
Total 3,067.4 2,435.3 26% 2,527.2 21% 7,935.2 8,134.8 (2)%
----------------- --------- --------- --------- --------- --------- -------- -------- ---------
(in US$ million, except as stated)
Group Q3 Q2 Nine months ended
EBITDA
----------------- --------------------------- ------------------ ------------------------------
FY FY % Change FY % Change FY FY % Change
2017 2016 YoY 2017 QoQ 2017 2016 YoY
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
Zinc 436.1 217.6 - 346.9 26% 980.7 856.1 15%
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
India 406.4 217.8 87% 295.9 37% 862.5 799.7 8%
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
International 29.7 (0.2) - 51.0 (42)% 118.1 56.4 -
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
Oil and
Gas 158.2 95.5 66% 154.8 2% 432.1 469.2 (8)%
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
Iron Ore 63.0 11.1 - 17.7 - 134.6 18.3 -
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
Copper 67.5 102.1 (34)% 73.9 (9)% 211.0 248.0 (15)%
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
India/
Australia 66.8 91.3 (27)% 60.5 10% 193.1 261.5 (26)%
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
Zambia 0.7 10.8 (94)% 13.4 (94)% 17.9 (13.5) -
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
Aluminium 95.0 20.9 - 62.8 51% 197.1 42.6 -
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
Power 67.4 45.4 48% 56.7 19% 175.3 138.1 27%
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
Others (4.9) 1.0 - (6.8) (29)% (15.4) 6.9 -
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
Total 882.3 493.6 79% 706.1 25% 2,115.4 1,779.2 19%
----------------- ------- ------- --------- ------- --------- --------- -------- ---------
For further information, please contact:
Communications Finsbury
Roma Balwani Daniela Fleischmann
President - Group Communications, Tel: +44 20 7251 3801
Sustainability vedanta@finsbury.com
and CSR
Tel: +91 22 6646 1000
gc@vedanta.co.in
Investors
Tel: +91 22 6646 1531
Ashwin Bajaj ir@vedanta.co.in
Director - Investor Relations
Radhika Arora
Associate General Manager
- Investor Relations
Ravindra Bhandari
Manager - Investor Relations
About Vedanta Resources plc
Vedanta Resources plc ("Vedanta") is a London listed diversified
global natural resources company. The group produces Aluminium,
copper, zinc, lead, silver, iron ore, oil & gas and commercial
energy. Vedanta has operations in India, Zambia, Namibia, South
Africa, Ireland, Liberia and Australia. With an empowered talent
pool globally, Vedanta places strong emphasis on partnering with
all its stakeholders based on the core values of trust,
sustainability, growth, entrepreneurship, integrity, respect and
care. For more information, please visit
www.vedantaresources.com.
Disclaimer
This press release contains "forward-looking statements" - that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "should" or "will." Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLTMMFTMBJTMMR
(END) Dow Jones Newswires
February 20, 2017 02:00 ET (07:00 GMT)
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