TIDMVED
RNS Number : 2509U
Vedanta Resources PLC
16 January 2017
16 Jan 2017
Vedanta Resources Plc
Production Release for the Third Quarter
And Nine months ended 31(st) December 2016
Q3 Highlights
Operations
-- Zinc India:
-- Mined metal production up 44% q-o-q in line with mine
plan
-- Integrated metal production increased q-o-q: zinc 38%, lead
26% and silver 10%
-- Environment clearances received for expansion of Zawar and
Sindesar Khurd mines
-- Aluminium:
-- Continued ramp up of Jharsuguda-II and BALCO-II smelters;
third line of the 1.25 mtpa Jharsuguda-II smelter commenced ramp up
in December 2016
-- Supply of coal has commenced from the 6mtpa coal linkages
secured earlier this year
-- Power:
-- 1,980MW TSPL plant fully operational with 77% plant
availability
-- Oil & Gas:
Rajasthan production impacted by planned shutdown; strong
performance from Mangala EOR with production level of 55,000
barrels per day despite shutdown
-- Iron Ore:
-- Expected to achieve annual mining cap at Karnataka and Goa in
the current month; received additional mining allocation in Goa for
FY 2017
-- Copper - Zambia:
-- Lower integrated volumes due to lower equipment availability
and lower grades
Corporate
-- S&P upgraded rating to B+ with stable outlook
-- Vedanta Limited - Cairn India merger approved by all sets of
shareholders; expected to complete by Q1 CY2017
Tom Albanese, Chief Executive Officer, Vedanta Resources plc,
said: "We have made substantial operational progress during the
quarter with the enhancement of production from Zinc India and the
ramp up of our Aluminium capacities. The 1,980 MW TSPL power plant
continues to operate at a high availability of 77%. In our Oil and
Gas business, the EOR program at the Mangala oil field in Rajasthan
continued to yield positive results. We are very excited about our
Gamsberg Zinc project in South Africa where pre-stripping is well
underway and first ore is expected in mid CY2018. Though we had
some operational challenges at Copper Zambia during the quarter, we
continue to be focused on the turnaround of this asset. We will
continue our sustained focus on costs alongside rising capacity
utilizations thus driving free cash flow growth."
Oil & Gas
Q3 Q2 Nine months
period
---------------------- ---------------------------- ------------------- ----------------------------
Particulars FY2017 FY2016 % FY2017 % change FY2017 FY2016 %
change QoQ change
YoY YoY
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
OIL AND GAS
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Average Daily
Total Gross
Operated Production
(boepd) (1) 191,230 211,843 (10%) 206,230 (7%) 201,286 214,663 (6)%
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Average Daily
Gross Operated
Production
(boepd) 181,818 202,668 (10%) 196,399 (7%) 191,674 205,909 (7)%
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Rajasthan 154,272 170,444 (9%) 167,699 (8%) 162,957 170,258 (4)%
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Ravva 18,172 21,703 (16%) 18,823 (3%) 18,874 25,430 (26)%
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Cambay 9,375 10,521 (11%) 9,877 (5%) 9,843 10,221 (4)%
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Average Daily
Working Interest
Production
(boepd) 115,829 128,402 (10%) 125,575 (8%) 122,254 128,991 (5)%
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Rajasthan 107,990 119,311 (9%) 117,390 (8%) 114,070 119,180 (4)%
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Ravva 4,089 4,883 (16%) 4,235 (3%) 4,247 5,722 (26)%
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Cambay 3,750 4,208 (11%) 3,951 (5%) 3,937 4,089 (4)%
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Total Oil
and Gas (million
boe)
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Oil & Gas-
Gross 16.73 18.65 (10%) 18.07 (7%) 52.71 56.62 (7)%
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Oil & Gas-Working
Interest 10.66 11.81 (10%) 11.55 (8%) 33.62 35.47 (5)%
---------------------- -------- -------- -------- -------- --------- -------- -------- --------
Third quarter FY 2017 vs. previous quarters
For Q3 FY2017, average gross production across assets was
resilient at 181,818 barrels of oil equivalent per day (boepd).
Production was lower primarily due to planned maintenance shutdown
in Rajasthan and natural decline in offshore assets.
Gross production from Rajasthan block averaged 154,272 boepd for
the quarter, lower mainly due to the planned maintenance shutdown
at the Mangala Processing Terminal which will help maintain asset
integrity and improve the plant performance.
We had encouraging results from Mangala Enhanced Oil Recovery
(EOR), driven by enhanced well productivity and production
optimization activities. The production from EOR increased to an
average of 55 kboepd in Q3 FY2017 from 52 kboepd in Q2 FY2017.
Continued reservoir management including production optimization
helped maintain steady production from Bhagyam and Aishwariya.
Gross production from Development Area-1 (DA-1) and Development
Area-2 (DA-2) averaged 141,177 boepd and 13,095 boepd,
respectively.
Production from Ravva and Cambay was also firm at 18,172 and
9,375 boepd, respectively. Production optimization activities
helped offset the natural decline in the blocks. Ravva and Cambay
facilities recorded an excellent uptime of 99.9% and 99.8%,
respectively.
Gas production from RDG was lower at an average of 21 mmscfd in
Q3 FY2017 compared to 33 mmscfd in Q2 FY2017. Gas sales also
declined quarter-on-quarter to 4 mmscfd from 17 mmscfd. The sales
have been temporarily suspended due to a technical issue between
the gas transporter and the buyers. Cairn is closely engaged with
various stakeholders to address the issue and enable the resumption
of the sales at the earliest
Nine months FY 2017 vs. nine months FY 2016
Gross production declined by 7% on year-on-year basis primarily
due to lower volumes from offshore assets and planned maintenance
shutdown in Rajasthan during the current year, partially offset by
volume ramp up from the EOR project at Mangala and continued
effective reservoir management across assets.
Zinc India
Particulars Q3 Q2 Nine months
ended
----------------------- -------------------------- --------------------------
FY2017 FY2016 % FY2017 % FY2017 FY2016 %
change change change
YoY QoQ YoY
----------------------- ------- ------- -------- ------- -------- ------- ------- --------
Zinc India(kt)
----------------------- ------- ------- -------- ------- -------- ------- ------- --------
Mined metal content 276 228 21% 192 44% 595 700 (15)%
----------------------- ------- ------- -------- ------- -------- ------- ------- --------
Refined Zinc
- Total 205 206 0% 150 37% 457 605 (24)%
----------------------- ------- ------- -------- ------- -------- ------- ------- --------
Refined Zinc
- Integrated 205 206 0% 149 38% 456 605 (25)%
----------------------- ------- ------- -------- ------- -------- ------- ------- --------
Refined Zinc
- Custom - - - 1 - 1 - 0%
----------------------- ------- ------- -------- ------- -------- ------- ------- --------
Refined Lead
- Total (2) 39 35 10% 31 26% 94 107 (12)%
----------------------- ------- -------- ------- -------- ------- --------
Refined Lead
- Integrated 39 35 10% 31 26% 94 102 (8)%
----------------------- ------- ------- -------- ------- -------- ------- ------- --------
Refined Lead - - - - - - 5 -
- Custom
----------------------- ------- ------- -------- ------- -------- ------- ------- --------
Silver - Total
(in mn ounces)
(3) 3.79 3.73 2% 3.45 10% 10.08 9.73 4%
----------------------- ------- ------- -------- ------- -------- ------- ------- --------
Silver- Integrated
(in mn ounces) 3.79 3.73 2% 3.45 10% 10.08 9.64 5%
----------------------- ------- ------- -------- ------- -------- ------- ------- --------
Silver- Custom - - - - - - 0.09 -
(in mn ounces)
----------------------- ------- ------- -------- ------- -------- ------- ------- --------
Third quarter FY 2017 vs. previous quarters
Mined metal production was 276,000 tonnes, higher by 21%
compared with Q3 FY2016 and 44% sequentially. The sequential
increase was on account of higher volumes from Rampura Agucha open
cast mine in accordance with mine plan and the y-o-y increase was
driven by higher volumes from Rampura Agucha underground and open
cast mines.
We are on track to achieve stated guidance of higher mined metal
production in FY2017 compared to FY2016.
Integrated zinc metal production during the quarter was at
205,000 tonnes, up 38% from previous quarter, and flat y-o-y on
account of accretion of mined metal inventory. Integrated saleable
lead metal production during the quarter was 39,000 tonnes, up 26%
sequentially and 10% y-o-y. The y-o-y increase was in line with
mined metal production, while the sequential increase was on
account of enhanced smelter efficiencies. Integrated silver
production during the quarter increased by 10% to 3.79 million
ounces from previous quarter and 2% y-o-y.
In line with the on-going expansion to reach 1.2 mtpa mined
metal production capacity, environmental clearances were received
for Sindesar Khurd expansion of ore production capacity from 3.75
mtpa to 4.5 mtpa and for Zawar mine to 4 mtpa.
Nine months FY 2017 vs. nine months FY 2016
Mined metal production during the nine month period was 15%
lower y-o-y. This was in line with the earlier guidance of
substantially higher mined metal production in H2, and Q4
production will be higher than Q3. Integrated silver production was
higher by 5% y-o-y primarily due to higher volume from our
silver-rich Sindesar mine. During this nine month period,
underground mines ramped up significantly to achieve a substantial
60% y-o-y increase in ore production and 55% y-o-y increase in
mined metal production.
Zinc - International
Q3 Q2 Nine months
ended
-------------------- --------------------------- ------------------ ---------------------------
Particulars FY2017 FY2016 % change FY2017 % change FY2017 FY2016 % change
(in'000 tonnes, YoY QoQ YoY
or as stated)
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Zinc International 33 51 (35)% 39 (17)% 115 184 (38)%
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Zinc -refined
-Skorpion 17 13 34% 23 (25)% 64 55 16%
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Mined metal
content - BMM 15 17 (11)% 16 (5)% 51 48 5%
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Mined metal
content - Lisheen - 21 - - - - 81 -
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Third quarter FY 2017 vs. previous quarters
Total production for Q3 FY2017 was 33,000 tonnes, 35% lower
y-o-y primarily due to the closure of the Lisheen mine in November
2015, following 17 years of successful operations. Q3 FY2017
production excluding Lisheen was 9% higher y-o-y. Production was
17% lower q-o-q mainly due to technical issues at Skorpion and BMM
which necessitated some production rescheduling.
Skorpion production during the quarter was 17,000 tonnes, 34%
higher y-o-y but 25% lower q-o-q, due to increased upstream
material handling challenges to treat wetter than anticipated ore
through the refinery. BMM production for the quarter was 15,000
tonnes, 11% lower y-o-y and 5% lower q-o-q, primarily due to
equipment unavailability.
At the Gamsberg Project, pre-start activities and
waste-stripping is progressing well. To date, we have excavated
over 13 million tonnes of waste rock. Project cost of c.75% is
committed to date with major orders for the mining contract, the
concentrator plant and power and water connections placed. The
balance orders for equipment are planned to be placed in Q4 FY2017.
The first production is on track for mid CY2018 followed by 9-12
months ramp up to full production of 250 ktpa. The expected COP at
Gamsberg is $1,000-$1,150 per tonne.
Nine months FY 2017 vs. nine months FY 2016
Total production was 115,000 tonnes, 38% lower compared to
corresponding prior period mainly due to closure of the Lisheen
mine. Production volume from Skorpion and BMM was up by 16% and 5%,
respectively.
Iron Ore
Q3 Q2 Nine months
ended
--------------------- --------------------------- ------------------ ---------------------------
Particulars FY2017 FY2016 % change FY2017 % change FY2017 FY2016 % change
(in million YoY QoQ YoY
dry metric tonnes,
or as stated)
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
IRON ORE
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Sales 3.7 1.5 - 0.8 - 7.1 2.7 -
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Goa 2.7 0.6 - 0.3 - 5.1 0.6 -
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Karnataka 1.0 0.9 4% 0.5 - 2.0 2.1 (6)%
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Production of
Saleable Ore 2.6 1.4 - 1.5 - 7.3 2.4 -
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Goa 2.3 0.3 - 0.5 - 5.2 0.3 -
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Karnataka 0.4 1.1 (66)% 0.9 (60)% 2.1 2.1 3%
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Production ('000
tonnes)
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Pig Iron 154 146 5% 192 (20)% 526 466 13%
--------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Third quarter FY 2017 vs. previous quarters
At Goa, production was 2.3 million tonnes and sales were 2.7
million tonnes during the quarter. Mining activities resumed post
the monsoon season, and hence production was significantly higher
sequentially. At Karnataka, production was 0.4 million tonnes and
sales were 1.0 million tonnes. Sales were higher than production at
Goa and Karnataka due to sales from opening inventory.
During Q3 FY2017, production of pig iron was higher y-o-y at
154,000 tonnes due to higher plant availability post
debottlenecking. Production was lower by 20% q-o-q primarily due to
the maintenance shutdown for relining one of the furnaces for about
35 days in Q3 FY2017.
Our annual mining allocations of 5.5mt and 2.3mt for Goa and
Karnataka, respectively, are expected to be achieved in the current
month. We have been engaged with the respective state governments
for an increase in the mining caps. The Goa government has granted
additional mining allocation to us for the current fiscal year, and
we expect to produce an additional 2 to 3mt this year.
Nine months FY 2017 vs. nine months FY 2016
Production at Goa was 5.2 million tonnes and sales were 5.1
million tonnes. At Karnataka, production was 2.1 million tonnes and
sales were 2.0 million tonnes. Production of pig iron ramped up to
a record production of 526,000 tonnes due to higher plant
availability post debottlenecking.
Copper - India
Q3 Q2 Nine months
ended
-------------------- -------------------------- ----------------- --------------------------
Particulars FY2017 FY2016 % FY2017 % FY2017 FY2016 %
(in'000 tonnes, change change change
or as stated) YoY QoQ YoY
-------------------- ------- ------- -------- ------- -------- ------- ------- --------
COPPER- INDIA
-------------------- ------- ------- -------- ------- -------- ------- ------- --------
Copper - Cathodes 102 89 15% 97 5% 300 282 6%
-------------------- ------- ------- -------- ------- -------- ------- ------- --------
Tuticorin
Power Sales
(MU) 46 40 15% 30 55% 136 334 (59)%
-------------------- ------- ------- -------- ------- -------- ------- ------- --------
Third quarter FY 2017 vs. previous quarters
The Tuticorin smelter produced 102,000 tonnes of cathodes during
Q3 FY2017, up 15% y-o-y. During Q3 FY2016, volumes were lower on
account of flooding in the state and unplanned shutdowns.
The 160 MW power plant at Tuticorin operated at a lower plant
load factor (PLF) of 56% during Q3 FY2017 (PLF of 52% in Q3 FY2016,
48% during Q2 FY2017). PLF was lower due to lower off-take by the
Telangana State Electricity Board (TSEB). However, as per our
offtake agreement with TSEB, we are entitled to compensation at the
rate 20% of the contracted rate, for off-take below 85% of the
contracted quantity.
Nine months FY 2017 vs. nine months FY 2016
Production volume from the Tuticorin smelter was 300,000 tonnes
of cathodes, higher by 6% compared to corresponding prior period.
The 160MW power plant at Tuticorin operated at a PLF of 55% in the
first nine months of FY2017 compared to 95% in corresponding prior
period, primarily due to lower offtake restrictions from Tamil Nadu
Electricity Board (TNEB) and TSEB. The power purchase agreement
with TNEB ended on 31(st) May 2016 post which we entered into an
agreement with TSEB.
Copper - Zambia
Q3 Q2 Nine months
ended
------------------ --------------------------- ------------------ ---------------------------
Particulars FY2017 FY2016 % change FY2017 % change FY2017 FY2016 % change
(in'000 tonnes, YoY QoQ YoY
or as stated)
------------------ ------- ------- --------- ------- --------- ------- ------- ---------
COPPER -ZAMBIA
------------------ ------- ------- --------- ------- --------- ------- ------- ---------
Mined metal 21 32 (33)% 29 (27)% 79 94 (16)%
------------------ ------- ------- --------- ------- --------- ------- ------- ---------
Copper - Total 37 45 (18)% 47 (20)% 130 136 (5)%
------------------ ------- ------- --------- ------- --------- ------- ------- ---------
Integrated 21 28 (25)% 28 (23)% 77 89 (14)%
------------------ ------- ------- --------- ------- --------- ------- ------- ---------
Custom 16 17 (7)% 19 (16)% 53 47 11%
------------------ ------- ------- --------- ------- --------- ------- ------- ---------
Third quarter FY 2017 vs. previous quarters
During Q3, mined metal production was 21,000 tonnes, 33% lower
y-o-y, mainly due to lower production from Nchanga underground
which was placed on managed care and maintenance in Q3 FY2016, and
had contributed c. 4,000 tonnes last year, and one-off equipment
constraints at Konkola.
Production from the Konkola underground mine was impacted by
lower trackless equipment availability. At the Tailings Leach
Plant, production reduced by 25% y-o-y due to throughput
constraints at the mill and lower feeds from current tails.
Custom volumes at 16,000 tonnes were 7% lower on a y-o-y basis
and 16% lower compared to the prior quarter. Production was
primarily impacted by a biennial shutdown for 40 days, which
commenced on 26 September 2016. Operations have recommenced post
the shutdown.
The elevated temperature leach project is under commissioning
and the initial recovery results are encouraging.
Nine months FY2017 vs nine months FY2016
Mined metal production was at 79,000 tonnes, 16% lower y-o-y and
integrated volume was at 77,000 tonnes, lower compared to mine
metal production due to an increase in the concentrate inventory.
Custom volumes were at 53,000 tonnes, 11% higher compared to nine
months ended 31 December 2015.
Aluminium
Q3 Q2 Nine months
ended
-------------------- --------------------------- ------------------ ---------------------------
Particulars(in'000 FY2017 FY2016 % change FY2017 % change FY2017 FY2016 % change
tonnes, or as YoY QoQ YoY
stated)
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Aluminium
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Alumina-Lanjigarh 328 218 50% 292 12% 895 760 18%
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Total Aluminium
Production 319 234 37% 296 8% 860 697 23%
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Jharsuguda-I 132 131 1% 132 0% 393 392 0%
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Jharsuguda-II
(4) 84 19 - 48 75% 161 57 -
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Korba-I 65 65 0% 63 3% 192 192 0%
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Korba-II (5) 38 19 - 52 (27)% 115 56 -
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Balco 270 MW - - - - - - -
* (6)
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Jharsuguda 1800
MW (Surplus Power
Sales in Million
Units) * (6) - - - 156 - 511 - -
-------------------- ------- ------- --------- ------- --------- ------- ------- ---------
* Jharsuguda 1,800MW and Balco 270 MW have been moved from the
power to the Aluminum segment from 1(st) April 2016.
Third quarter FY 2017 vs. previous quarters
The first line of the 1.25 mtpa Jharsuguda-II smelter was
impacted by a transformer failure incident earlier this month.
Rectification work is in process and 80 pots of the 336 pots are
currently operational. The second line is nearing full ramp up with
329 pots of the 336 pots commissioned. The balance pots of the line
will be commissioned shortly. The ramp up of the third line of the
smelter has commenced in end December 2016.
The 325kt BALCO-II smelter had been impacted by a pot failure
incident in Q2 FY2017. 200 pots of the 336 pots are currently
operational and full ramp-up of the smelter is expected by the end
of Q4 FY2017. The rolled product facility at BALCO, which was
temporarily shut-down last year, successfully commenced its
operations in Q2 FY2017 following optimisation of its cost
structure, and produced 6,100 tonnes during the quarter.
The two streams of the Lanjigarh refinery operated during the
quarter and produced 328,000 tonnes in Q3 FY2017, 12% higher than
Q2 FY2017. The refinery currently has a debottlenecked capacity of
1.7 - 2.0 million tonnes per annum.
There were no sales from the 1,800 MW Jharsuguda power plant due
to a weak power market. However, the PLF's will continue to
increase as we ramp up the Jharsuguda-II smelter.
Coal linkages of 6mtpa were secured through auctions in Q2
FY2017 for captive power plants. Supply has commenced from these
linkages in November 2016.
We expect to produce between 1 to 1.1 mtpa of Aluminium
(excluding trial run production) in FY2017.
Nine months FY2017 vs nine months FY2016
Aluminium production was a record at 860,000 tonnes, 23% higher
y-o-y mainly on account of ramp up of additional pots at the
BALCO-II and Jharsuguda-II smelters. Alumina production was 18%
higher at 895,000 tonnes, due to the commencement of the second
stream of the refinery from 1(st) April 2016.
Power
Q3 Q2 Nine months
period
----------------------- --------------------------- ------------------ ---------------------------
Particulars FY2017 FY2016 % change FY2017 % change FY2017 FY2016 % change
(in million YoY QoQ YoY
units)
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Power
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Total Power
Sales 3,413 2,934 16% 3,030 13% 9,453 8,728 8%
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Jharsuguda
600 MW(*
6) 879 1,593 (45)% 605 45% 2,376 5,413 (56)%
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
TSPL 1,792 839 - 1,679 7% 4,743 1,922 -
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Balco 600
MW 660 368 79% 549 20% 1,817 526 -
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
Balco 270
MW(* 6) - 41 - - - - 169 -
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
MALCO 29 26 12% 25 16% 144 345 (58)%
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
HZL Wind
Power 53 67 (22)% 172 (69)% 373 353 6%
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
TSPL - Availability 77% 85% - 77% - 76% 77% -
----------------------- ------- ------- --------- ------- --------- ------- ------- ---------
* Jharsuguda 1,800MW and Balco 270 MW have been moved from the
power to the Aluminum segment from 1(st) April 2016.
Third quarter FY 2017 vs. previous quarters
Total power sales were higher y-o-y due to the commissioning of
additional power units at TSPL and BALCO over the last one
year.
Power sales from TSPL increased with all three units being
operational. In Q3 FY2017, the three units operated at an
availability of 77%. The Power Purchase Agreement with the Punjab
State Power Corporation Limited (PSPCL) compensates us based on the
availability of the plant.
The Jharsuguda 600MW power plant operated at a plant load factor
(PLF) of 72% in Q3 FY2017 (PLF 66% in Q3 FY2016, 50% in Q2
FY2017).
The 600 MW units (2x300MW) of BALCO IPP operated at a PLF of 55%
in Q3 FY2017 due to a weaker power market.
PLF at the MALCO power plant was lower due to lower off-take by
the Telangana State Electricity Board (TSEB). However, as per the
contract entered into with TSEB, we are entitled to compensation at
20% of the contracted rate for off-take below 85% of the
contractual quantity.
Nine months FY2017 vs nine months FY2016
Power sales were higher by 8% compared with corresponding prior
period due to commissioning of additional units at TSPL and BALCO
power plants.
Production Summary (Unaudited)
(In '000 tonnes, except as stated)
Particulars Q3 Q2 Nine months
period
------------------------- ---------------------------- ------------------- ----------------------------
% % Change %
FY FY Change FY QoQ FY FY Change
2017 2016 YoY 2016 2017 2016 YoY
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
OIL AND GAS
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Average Daily Total
Gross Operated
Production (boepd)
(1) 191,230 211,843 (10%) 206,230 (7)% 201,286 214,663 (6)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Average Daily Gross
Operated Production
(boepd) 181,818 202,668 (10%) 196,399 (7)% 191,674 205,909 (7)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Rajasthan 154,272 170,444 (9%) 167,699 (8)% 162,957 170,258 (4)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Ravva 18,172 21,703 (16%) 18,823 (3)% 18,874 25,430 (26)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Cambay 9,375 10,521 (11%) 9,877 (5)% 9,843 10,221 (4)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Average Daily Working
Interest Production
(boepd) 115,829 128,402 (10%) 125,575 (8)% 122,254 128,991 (5)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Rajasthan 107,990 119,311 (9%) 117,390 (8)% 114,070 119,180 (4)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Ravva 4,089 4,883 (16%) 4,235 (3)% 4,247 5,722 (26)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Cambay 3,750 4,208 (11%) 3,951 (5)% 3,937 4,089 (4)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Total Oil and Gas -
(million boe)
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Oil & Gas- Gross 16.73 18.65 (10%) 18.07 (7)% 52.71 56.62 (7)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Oil & Gas-Working
Interest 10.66 11.81 (10%) 11.55 (8)% 33.62 35.47 (5)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Zinc India
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Mined metal content 276 228 21% 192 44% 595 700 (15)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Refined Zinc -
Total 205 206 0% 150 37% 457 605 (24)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Refined Zinc -
Integrated 205 206 0% 149 38% 456 605 (25)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Refined Zinc -
Custom - - - 1 - 1 - 0%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Refined Lead -
Total (2) 39 35 10% 31 26% 94 107 (12)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Refined Lead -
Integrated 39 35 10% 31 26% 94 102 (8)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Refined Lead - - - - - - - 5 -
Custom
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Silver - Total
(in mn ounces)
(3) 3.79 3.73 2% 3.45 10% 10.08 9.73 4%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Silver- Integrated
(in mn ounces) 3.79 3.73 2% 3.45 10% 10.08 9.64 5%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Silver- Custom - - - - - - 0.09 -
(in mn ounces)
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Zinc International 33 51 (35)% 39 (17)% 115 184 (38)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Zinc -Refined -Skorpion 17 13 34% 23 (25)% 64 55 16%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Mined metal content
- BMM 15 17 (11)% 16 (5)% 51 48 5%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Mined metal content
- Lisheen - 21 - - - - 81 -
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
IRON ORE (in million
dry metric tonnes,
or as stated)
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Sales 3.7 1.5 - 0.8 - 7.1 2.7 -
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Goa 2.7 0.6 - 0.3 - 5.1 0.6 -
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Karnataka 1.0 0.9 4% 0.5 - 2.0 2.1 (6)%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Production of Saleable
Ore 2.6 1.4 - 1.5 - 7.3 2.4 -
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Goa 2.3 0.3 - 0.5 - 5.2 0.3 -
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Karnataka 0.4 1.1 (66)% 0.9 (60)% 2.1 2.1 3%
------------------------- -------- -------- -------- -------- --------- -------- -------- --------
Particulars Q3 Q2 Nine months
period
----------------------- -------------------------- ----------------- -------------------------
FY FY % Change FY % Change FY FY % Change
2017 2016 YoY 2017 QoQ 2017 2016 YoY
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Pig Iron 154 146 5% 192 (20)% 526 466 13%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
COPPER - INDIA
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Copper - Cathodes 102 89 15% 97 5% 300 282 6%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Tuticorin Power
Plant Sales (MU) 46 40 15% 30 55% 136 334 (59)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
COPPER - ZAMBIA
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Mined metal 21 32 (33)% 29 (27)% 79 94 (16)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Copper - Total 37 45 (18)% 47 (20)% 130 136 (5)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Integrated 21 28 (25)% 28 (23)% 77 89 (14)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Custom 16 17 (7)% 19 (16)% 53 47 11%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
ALUMINUM
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Alumina-Lanjigarh 328 218 50% 292 12% 895 760 18%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Total Aluminum
Production 319 234 37% 296 8% 860 697 23%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Jharsuguda-I 132 131 1% 132 0% 393 392 0%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Jharsuguda-II(4) 84 19 - 48 75% 161 57 -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Korba-I 65 65 0% 63 3% 192 192 0%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Korba-II(5) 38 19 - 52 (27)% 115 56 -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Balco 270 MW * - - - - - - - -
(6)
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Jharsuguda 1800
MW (Surplus Power
Sales in Million
Units) * (6) - - - 156 - 511 - -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
POWER (in million
units)
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Total Power Sales 3,413 2,934 16% 3,030 13% 9,453 8,728 8%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Jharsuguda 600
MW(* 6) 879 1,593 (45)% 605 45% 2,376 5,413 (56)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
TSPL 1,792 839 - 1,679 7% 4,743 1,922 -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Balco 600 MW 660 368 79% 549 20% 1,817 526 -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Balco 270 MW (*
6) - 41 - - - - 169 -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
MALCO 29 26 12% 25 16% 144 345 (58)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
HZL Wind Power 53 67 (22)% 172 (69)% 373 353 6%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
TSPL - Availability 77% 85% - 77% - 76% 77% -
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Ports - VGCB (in
million tonnes)
(7)
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Cargo Discharge 0.6 1.8 (65)% 1.3 (49)% 3.5 5.5 (36)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
Cargo Dispatches 0.7 1.9 (65)% 1.5 (56)% 3.6 5.7 (36)%
----------------------- ------ ------- --------- ------ --------- ------ ------ ---------
1. Including Internal Gas consumption
2. Excluding Captive consumption of 1,731 tonnes in Q3 FY2017 vs
2,051 tonnes in Q3 FY2016, 837 tonnes in Q2 FY2017 and 3,652 tonnes
in nine months period FY2017 vs. 5,749 tonnes in nine months period
FY2016
3. Excluding captive consumption of 463,000 ounces in Q3 FY2017
vs. 344,000 ounces in Q3 FY2016, 139,000 ounces in Q2 FY2017 and
602,000 ounces in nine months period FY 2017 vs. 956,000 ounces in
nine months period FY 2016
4. Including trial run production of 36 kt in Q3 FY2017, 12 kt
in Q3 FY2016, 19 kt in Q2 FY2017, 67 kt in nine months ended FY2017
vs 51 kt in in nine months ended FY 2016
5. Including trial run production of 270t in Q3 FY2017, Nil in
Q3 FY2016, 28 kt in nine months ended FY2017 vs Nil kt in in nine
months ended FY2016
6. Jharsuguda 1,800MW and Balco 270 MW have been moved from the
power to the Aluminum segment from 1st April 2016
7. Vizag General Cargo Berth
For further information, please contact:
Communications Finsbury
Roma Balwani Daniela Fleischmann
President - Group Communications, Tel: +44 20 7251 3801
Sustainability vedanta@finsbury.com
and CSR
Tel: +91 22 6646 1000
gc@vedanta.co.in
Investors
Tel: +91 22 6646 1531
Ashwin Bajaj ir@vedanta.co.in
Director - Investor Relations
Radhika Arora
Associate General Manager
- Investor Relations
Ravindra Bhandari
Manager - Investor Relations
About Vedanta Resources plc
Vedanta Resources plc ("Vedanta") is a London listed diversified
global natural resources company. The group produces Aluminium,
copper, zinc, lead, silver, iron ore, oil & gas and commercial
energy. Vedanta has operations in India, Zambia, Namibia, South
Africa, Ireland, Liberia and Australia. With an empowered talent
pool globally, Vedanta places strong emphasis on partnering with
all its stakeholders based on the core values of trust,
sustainability, growth, entrepreneurship, integrity, respect and
care. For more information, please visit
www.vedantaresources.com.
Disclaimer
This press release contains "forward-looking statements" - that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "should" or "will." Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBGGDBSDBBGRL
(END) Dow Jones Newswires
January 16, 2017 05:31 ET (10:31 GMT)
Vedanta (LSE:VED)
Historical Stock Chart
From Apr 2024 to May 2024
Vedanta (LSE:VED)
Historical Stock Chart
From May 2023 to May 2024