Vedanta Resources records 40% profit increase for 2017
Vedanta Resources has recorded a major profit increase for the first quarter of 2017.
The company announced a 48% increase to USD $777.8 million for the first quarter to June.
The company, which produces aluminium, copper, zinc, lead, silver, iron ore, oil and gas and commercial energy, had previously recorded USD 527.1 million in Ebitda.
Tom Albanese, CEO, Vedanta Resources, said: "We have made a positive start to the year with both revenue and Ebitda significantly up year on year. In particular, our zinc and oil and gas businesses have delivered a strong quarter."
He said zinc prices have strengthened since the quarter end following continued global supply deficits.
"The Gamsberg zinc project remains on course to commence production in mid-2018. We remain committed to improvements at CopperZambia while our continued ramp-up in the aluminium business has helped us exit the quarter with a strong production run rate of 1.4 mtpa. Our recent comprehensive refinancing exercise of $1.84 billion further helps optimise our balance sheet and create value for all our stakeholders," Albanese said.
The group's gross debt was also reduced by $1.3 billion in April-June while it reported a further reduction of USD 385 million post June.
The company said mined metal production of zinc in the said quarter was at 233 kt, up 84 percent y-o-y. The increase was primarily on account of higher volumes from all mines, higher zinc grades and depletion of opening ore stock.
The company said its financial position remains robust, with total cash and liquid investments of USD 7.4 billion and undrawn committed facilities of USD 1.1 billion as of June end.
"At June 30, 2017, gross debt and net debt were at USD 16.8 billion and USD 9.4 billion, respectively compared to USD 18.2 billion and USD 8.5 billion, respectively, as on March 31, 2017," the company said.