Vedanta posts record earnings

Indian group Vedanta Resources posted record Q1 core earnings, driven by continued strength in metals prices.

The London-listed firm said earnings before interest, tax, depreciation and amortisation (EBITDA) increased 33% to $1.055bn in the three months to the end of June. Sales jumped 44% to $3.4bn.

Aluminium production was 23% higher at 173kt in Q1 FY2011-12 compared to the corresponding quarter last year due to a 46% rise in production at its 500kt/y Jharsuguda-I smelter.

The Korba-II smelter continues to operate at its rated capacity.

Production will be lower in Q2 and Q3 FY2011-12 due to a power outage at the Jharsuguda-I smelter in June 2011. Around 170 pots were affected and the plant is expected to return to normal capacity by the end of Q3 FY2011-12.

The Lanjigarh refinery produced 224kt of alumina compared to 204kt compared to the same quarter last year.

EBITDA was significantly higher at $101.9M due to higher volumes and prices, partially offset by increased prices of bought-out alumina, coal and petroleum.

The first unit of the Balco 1200MW (4x300 MW) captive power plant project at Korba is expected to be synchronized in Q2 FY2011-12. Work at the 325kt/y aluminium smelter project at Korba is progressing, and it is targeting first metal tapping in Q4 FY2011-12.

The 1.25Mt/y Jharsuguda-II smelter project is in the final stages of completion, and Vedanta said it continues to evaluate the option of selling power versus producing aluminium at the smelter.