Vedanta Resources Plc (VED) fiscal second- quarter oil and gas output jumped 22 percent to a record after it ramped up the Rajasthan block in India, while a temporary mining ban in Karnataka pushed iron ore sales down 86 percent.
The company increased its so-called average gross operated production to 207,245 barrels of oil a day in the quarter ended Sept. 30, Vedanta said today in a statement.
Vedanta, which was primarily a mine operator, completed the purchase of a controlling stake in oil and gas explorer Cairn India Ltd. (CAIR) for $8.67 billion in December, giving it access to India’s biggest onshore oilfield. Oil became the largest profit contributor in the first quarter, with earnings before interest, tax, depreciation and amortization of $655.5 million.
“Vedanta has delivered in line or a small beat across divisions responsible for 90 percent of attributable Ebitda,” Liberum Capital Ltd. analysts wrote in a report to investors. “We expect this morning’s results to be taken positively.”
The company rose 2.1 percent to 1,090 pence by the close in London, valuing Vedanta at 2.9 billion pounds ($4.6 billion).
Iron ore sales slid to 200,000 metric tons from 1.6 million a year earlier after the mining ban in Karnataka, a temporary limit on iron ore extraction in Goa and transportation curbs in South Goa during the monsoons, the company said.
Refined zinc output fell to 190,000 tons from 210,000 tons. Aluminum rose to 197,000 tons from 151,000 tons. Zambian unit Konkola Copper Mines’ output rose to 45,000 tons from 39,000.
“Higher mined metal production contributed to a robust 42 percent increase in integrated production to 47,000 tonnes in the second quarter,” Vedanta said in the statement.
Production of finished copper plates, or cathodes, from India’s Tuticorin smelter was unchanged at 87,000 tons.
Vedanta is the largest copper producer in India.
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