Vedanta's first-quarter earnings and revenue drop as commodity prices weigh
Vedanta Resources posted a drop in first-quarter earnings and revenue, weighed by a decline in commodity prices, particularly oil.
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Total earnings before interest, taxes, depreciation and amortisation fell 38% to $644.6m from $1.0bn in the same period last year, on revenue of $2.95bn, down 4% from $3.06bn.
Core earnings in the company’s oil and gas division came in at $215.4m in the first quarter, down 61% from $549.9m last year.
The mining and energy company said EBITDA at its Zambian copper operations fell 78% in the quarter to $6bn from $28bn.
However, its Indian zinc division, which posted an 11% rise in core earnings to $255.4m, made the biggest contribution.
Chief executive officer Tom Albanese said: “In Q1 we saw continued volatility in commodity prices, but Zinc has held up quite well in view of its strong fundamentals and is now the largest contributor to our EBITDA.
“Our diversified business model supported by strong operating strengths and structurally low cost assets will enable robust long term returns to stakeholders."
Vedanta also said on Friday that the power supply at its copper mines in Zambia would be cut by up to 30% by Copperbelt Energy Corp.
At 0840 BST, shares were down 0.7% at 382.23p.