India-focused mining, oil and power firm Vedanta Resources said revenue increased over its third quarter as a result of higher commodity prices and production volumes.
The firm's revenue increased 26 per cent to $3.07bn (£2.46bn) in the third quarter, while earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 79 per cent to $882.3m from $493.6m the previous year.
However, revenue for the nine months to the end of December fell two per cent to $7.94bn when compared with the same period the year before.
Vedanta lowered its gross debt in the quarter by $300m to a total of $16bn.
Shares in the FTSE 250-listed metals group have been volatile this morning, first increasing around 1.7 per cent before falling slightly below its open price at 1,039p.
Why it's interesting
As previously announced, Vedanta's merger with oil and gas exploration company Cairn India has been approved by all sets of shareholders and is on track to be complete in first quarter of the 2017 calendar year.
Despite noting improved production, the firm in January posted a six per cent fall in daily production in its oil and gas output, a 15 per cent drop in its major mining arm Zinc India and a 16 per cent fall in its Zambia copper output.
However, mined metal production was up 21 per cent year-on-year and 44 per cent when compared with the second quarter, due to higher volumes from its Rampura Agucha open cast mine, and aluminium production increased 23 per cent.
What Vedanta said
Chief executive Tom Albanese said: "We have made substantial operational progress during the quarter with ramp up of our aluminium, power and iron ore capacities.
"We are very excited about our Gamsberg zinc project in South Africa where first ore is expected in mid-2018. At KCM, we are committed to the turnaround of this asset and continue to work towards it. Our rising capacity utilisations and the continued focus on costs, alongside stronger commodity prices, enabled us to deliver 79 per cent higher EBITDA and strong free cash flow.
"In line with our stated financial strategy to extend near-term maturities and optimise the balance sheet, we successfully issued a $1bn bond in January 2017 to proactively refinance part of our 2018 and 2019 bond maturities. We are pleased with the strong demand these bonds received, with support from all major markets."