2nd UPDATE: Vedanta Reports Record Ebitda, Higher Zinc Output

LONDON, Jul. 30 -- U.K.-listed, India-focused Vedanta Resources PLC (VED.LN) Friday reported record first quarter earnings before interest, taxation, depreciation and amortization, or Ebitda, and said zinc and aluminum production was higher but iron ore output was lower in the period.

Ebitda for the quarter ended June 30 was $1.054 billion, up 33% on the same period the previous year, while revenue rose 44% to $3.431 billion.

Production of zinc was the largest earnings contributor, accounting for 44% of first-quarter Ebitda.

Vedanta more than doubled its zinc Ebitda to $460.1 million on year, after acquiring Anglo American's (AAL.LN) zinc assets in southern Africa and increasing its Indian zinc output.

Refined Indian zinc production rose 17% on year to 193,000 tons due to higher volumes from the 210,000-tons-a-year Dariba smelter, now operating at capacity, and improved utilization rates across Indian smelters.

Iron ore was the second-largest contributor to earnings, accounting for 24% of the company's Ebitda even though iron ore Ebitda fell 25% on year to $253.8 million. Iron ore Ebitda fell due in part to a 15% drop in iron ore output to 4.4 million tons from the discontinuation of operations in Orissa, lower production at Karnataka and logistics constraints in Goa.

Copper was the third-largest contributor to earnings, accounting for 20% of Ebitda. Although copper Ebitda rose 54% on year to $211.4 million due to pricing, output was more mixed.

Zambian integrated copper production rose 3% to 35,000 tons while Indian and Australian copper division reported a 4% drop in cathode output at the Tuticorin smelter and a 14% drop in mined output in Australia.

Aluminum was the fourth-largest earnings contributor, accounting for 10% of Ebitda. Aluminum Ebitda rose 19% on year to $101.9 million as higher volumes and prices more than offset increased prices of bought-out alumina, coal and petroleum.

Aluminum output rose 23% to 173,000 due to a 46% rise in production at the 500,000-tons-a-year Jharsuguda-I smelter.

Energy was the smallest earnings contributor, accounting for 3% of Ebitda, or $29.1 million, benefiting from expanded output.

At 1351 GMT Vedanta shares traded up 12 pence, or 0.7%, at 1,779 pence, valuing the company at GBP4.78 billion.

Liberum said the results were solid. "We feel Vedanta should be able to achieve a 10% quarter-on-quarter increase in EBITDA in the second quarter to hit our $2.2 billion first-half target, given continued iron ore pricing strength, improved zinc prices and ongoing ramp-up at Copper Zambia in a strong pricing environment," it said.