Vedanta profit rise fuelled by Cairn takeover
MINER Vedanta yesterday reported a rise in profits – attributing the lift to its acquisition of Cairn India.
The company said that the outlook for commodity markets was positive despite losses in its aluminium business. Vedanta said that its profit had risen 13 per cent in the year to March to $4bn (£2.5bn) mainly fuelled by Cairn’s oil and zinc production.
However, spending on Cairn lifted net debt to $10.1bn, the company said. Vedanta completed its deal for Cairn India in December 2011, paying around $6bn.
Chairman Anil Agarwal said: “This has been a transformational year for the group, in which we completed the Cairn India acquisition, announced the consolidation of the group, and delivered strong growth.”
“We are one of the largest diversified natural resources companies globally, and with our growth projects largely completed the outlook for natural resources remains robust,” Agarwal added.
Agarwal also said that Vedanta had relatively low costs and expects double-digit growth in aluminium demand in India. Last month the company reported a drop in full-year iron ore output, hit by a ban on mining in the southern Indian state of Karnataka.
Meanwhile, Cairn yesterday gave a trading update in which it said it was waiting for seismic data before committing to further drilling in the seas off Greenland.
The company said its drilling was still “highly prospective”. Separately shareholders as expected voted to reject a bonus of more than £3m for founder Sir Bill Gammell.