Vedanta H1 profit climbs 50%
Vedanta said earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to the end of September came in at $2.6 billion, exactly in line with market forecasts, helped by record production at Cairn India, acquired last year, which offset weaker profits from zinc, copper and iron ore.
India-focused Vedanta said in February it planned to overhaul its web of subsidiaries, creating an umbrella unit that will group almost all its assets. It hopes to gain easier access to cash to service a heavy debt burden, but also to clear up a structure that has put off investors and held back the shares.
Vedanta said it was awaiting only approvals from Indian courts for the final stage of the process.
In line with our strategy, the simplification of the group structure is on track for completion by the end of calendar year 2012, it said. Vedanta gave no update on plans to buy the Indian government's minority stakes in Hindustan Zinc and Bharat Aluminium Co Lt (BALCO).
Vedanta said its first-half EBITDA was lifted by a $1.2 billion contribution from oil and gas - 47 percent of the total - as Cairn India's operations in Rajasthan ramped up to make up more than 20 percent of India's domestic oil production.
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