10.November 2017

Vedanta Resources plc

Interim results for the six months ended 30 September 2017

Financial highlights

  • Revenue of US$6.8 billion, up 39% y-o-y and EBITDA of US$1.7 billion, up 37% y-o-y, primarily due to higher volumes and strong commodity prices
  • Adjusted EBITDA margin of 34% in H1 FY2018 (H1 FY2017: 33%)
  • Profit attributable to equity holders of the parent (before special items) increased to US$ 21 million (H1 FY2017: US$(64) million)
  • Positive free cash flow(FCF) after growth capex of US$232 million (H1 FY2017: US$166 million)
  • Gross debt of US$15.1 billion, a reduction of US$3.1 billion over the last six months (including repayment of US$1.1 billion of temporary borrowing at Zinc India)
  • Net debt of US$9.0 billion, increased by US$ 0.5 billion in the last six months due to special dividends paid by subsidiaries
  • Underlying earnings per share of US cents 9.5 (H1 FY2017: loss of US cents 18.8) and basic loss per share of US cents 23.7 (H1 FY2017: loss of US cents 23.2)
  • Interim dividend of US cents 24 per share (H1 FY2017: US cents 20 per share)
  • Proactive refinancing of US$1.84 billion completed at Vedanta Resources plc in August 2017. This extends the average debt maturity by 1.5 years at Vedanta Resources plc level, lowers the average cost of borrowing and results in no significant debt maturities until December 2018.

Business highlights

Zinc India:

  • Refined zinc-lead metal production of 459kt, up 49% y-o-y
  • Refined silver production of 8.2 million ounces, up 30% y-o-y

Zinc International:

  • Gamsberg on track to commence production from mid-CY2018
  • Highest quarterly production for four years of 20kt at Black Mountain recorded during Q2 FY2018

Oil & Gas:

  • Commencing the next growth phase at Oil & Gas
  • 15-well infill drilling campaign at Mangala commenced; first well brought online

Aluminium:

  • Record half yearly production of 753kt, up 39% y-o-y
  • Continued smelter ramp-up, with current run-rate of 1.6 mtpa (excluding trial run production)

Power:

  • 1980 MW TSPL plant operated at a high availability of 87% in Q2 FY2018

Copper India:

  • Record quarterly copper cathode production of 106kt in Q2 FY2018

Copper Zambia:

  • Lower integrated production in H1 FY 2018 due to lower equipment availability, but progressive improvement in mined metal production from Q4 FY2017
  • Partnering with experts on operational improvement under way

Iron Ore:

  • Strong realisation at Karnataka, 1.9mt produced in H1 and full allocated production expected to be achieved during Q3 FY2018
  • Lower realisation at Goa in H1 FY 2018 due to increased discount for low grade iron ore
  • Focus on beneficiation and blending in H2 to increase realisations at Goa operations

Growth projects announced today:

  • Oil & Gas: Growth projects to increase production to 275-300kboepd
  • Copper India: Expansion of Tuticorin smelter from 400ktpa to 800ktpa

 

Please read the complete press release under the following link: LINK