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Record annual production of Aluminium, Power, Silver and cathodes at Copper - India
Entire power portfolio of 9,000 MW operational in March 2016 Operations:
Oil & Gas: Stable oil & gas production from Rajasthan for Q4, with successful ramp-up from Mangala EOR project
Zinc India:
FY2016 mined metal production in line with guidance
Record annual integrated silver production of 13.6 million ounces
Zinc International: Strong production volumes at Skorpion in Q4, following shutdowns
Copper Zambia: Continued strong production for the year
Copper India: Record annual copper cathode production
Aluminium: Record full year production; ramp-up of first line of the 1.25 million tonne Jharsuguda-II smelter commenced from 1 April 2016
Power:
Third 660 MW unit of Talwandi Sabo power plant synchronised in Q4
Two 300 MW units (one CPP and one IPP) of BALCO 1,200MW power plant commissioned in Q4
Iron ore: Goa operations ramped up - achieved exit run rate production of
0.8 million tonne per month following resolution of transportation issues
Corporate:Covenant modifications on bank loans at Vedanta Resources plc in place, to ensure compliance as on 31 March 2016
Hindustan Zinc Limited announced its highest ever special dividend in Q4 (c. $1.8 billion including dividend distribution tax)
Tom Albanese, Chief Executive Officer, Vedanta Resources plc, said: "We made substantial operational progress during the quarter by reaching important milestones in the Aluminium, Power and Iron Ore businesses. We are continuing to optimise production across our portfolio to generate maximum value in a low commodity price environment and remaining focussed on reducing costs to protect margins. These strong operational results reinforce the quality of our assets, our operational capability and resilience to weak markets. We also remain committed to proactively manage our balance sheet in these weak markets."
Q4 | Q3 | Full Year | ||||||
Particulars | FY2016 | FY2015 | % change YoY | FY2016 | % change QoQ | FY2016 | FY2015 | % change YoY |
OIL AND GAS | ||||||||
Average Daily Total Gross Operated Production (boepd) 1 | 206,170 | 224,294 | (8)% | 211,843 | (3)% | 212,552 | 220,876 | (4)% |
Average Daily Gross Operated Production (boepd) | 197,039 | 215,553 | (9)% | 202,668 | (3)% | 203,703 | 211,671 | (4)% |
Rajasthan | 167,650 | 174,206 | (4)% | 170,444 | (2)% | 169,609 | 175,144 | (3)% |
Ravva | 19,058 | 31,738 | (40)% | 21,703 | (12)% | 23,845 | 25,989 | (8)% |
Cambay | 10,331 | 9,609 | 8% | 10,521 | (2)% | 10,249 | 10,538 | (3)% |
Average Daily Working Interest Production (boepd) | 125,775 | 132,929 | (5)% | 128,402 | (2)% | 128,191 | 132,663 | (3)% |
Rajasthan | 117,355 | 121,944 | (4)% | 119,311 | (2)% | 118,726 | 122,601 | (3)% |
Ravva | 4,288 | 7,141 | (40)% | 4,883 | (12)% | 5,365 | 5,847 | (8)% |
Cambay | 4,132 | 3,844 | 8% | 4,208 | (2)% | 4,100 | 4,215 | (3)% |
Total Oil and Gas (million boe) | ||||||||
Oil & Gas- Gross | 17.93 | 19.40 | (8)% | 18.65 | (4)% | 74.56 | 77.26 | (4)% |
Oil & Gas-Working Interest | 11.45 | 11.96 | (4)% | 11.81 | (3)% | 46.92 | 48.42 | (3)% |
Average gross production for Q4 FY2016 was 197,039 boepd, 9% lower than Q4 FY2015, primarily due to lower volumes from Ravva on account of its natural decline. Ravva had strong volumes last year in Q4 due to additional wells coming online through the infill program.
Gross production from Rajasthan declined by 4% compared to Q4 FY2015, mainly due to the natural decline and under-performance of the Bhagyam reservoir. Lower volumes at Bhagyam were partly offset by infill wells in Aishwariya and reservoir management initiatives across all the fields, and a ramp up of production from successful EOR project execution at Mangala. Gross production from Development Area-1 (DA-1) and Development Area-2 (DA-2) averaged 150,918 boepd and 16,732 boepd, respectively.
Cambay block production increased by 8% compared to Q4 FY2015 driven by commissioning of an artificial gas lift system and better reservoir performance in Q4 FY2016.
Financial Year 2016 vs. Financial Year 2015Average gross production in FY2016 was 203,703 boepd, 4% lower than FY2015 on account of lower production from Rajasthan and offshore assets. Rajasthan production declined 3% due to reservoir underperformance at Bhagyam. However, an excellent performance by Mangala EOR and contribution from Aishwariya infill program partly made-up for the decline. Our Mangala EOR project is on track and producing results as per expectations. Prudent reservoir management practices helped us reduce the impact of natural decline in our offshore assets.
Gas production from the RDG field increased to an average rate of 27 mmscfd from 16 mmscfd in FY2015, surpassing our guidance of 25 mmscfd for FY2016.
Particulars | Q4 | Q3 | Full Year | |||||
FY2016 | FY2015 | % change YoY | FY2016 | % change QoQ | FY2016 | FY2015 | % change YoY | |
Zinc India(kt) | ||||||||
Mined metal content | 188 | 269 | (30)% | 228 | (17)% | 889 | 887 | 0% |
Refined Zinc - Total | 154 | 217 | (29)% | 206 | (25)% | 759 | 734 | 3% |
Refined Zinc - Integrated | 154 | 217 | (29)% | 206 | (25)% | 759 | 721 | 5% |
Refined Zinc - Custom | - | 0 | - | - | - | - | 13 | - |
Refined Lead - Total 2 | 38 | 36 | 6% | 35 | 9% | 145 | 127 | 14% |
Refined Lead - Integrated | 38 | 33 | 16% | 35 | 9% | 140 | 105 | 33% |
Refined Lead - Custom | - | 3 | - | - | - | 5 | 22 | - |
Silver - Total (in mn ounces) 3 | 3.92 | 2.59 | 51% | 3.73 | 5% | 13.65 | 10.53 | 30% |
Silver- Integrated (in mn ounces) | 3.92 | 2.37 | 65% | 3.73 | 5% | 13.56 | 8.56 | 58% |
Silver- Custom (in mn ounces) | - | 0.22 | - | - | - | 0.09 | 1.97 | - |
Mined metal production in Q4 was 188,500 tonnes, 30% lower y-o-y and 17% lower than Q3. The decrease was on account of lower production primarily from Rampura Agucha open pit as per the mining plan, which was partially offset by significantly higher production from all the underground mines especially Sindesar Khurd and Kayad mines, resulting in higher lead and silver volumes.
Refined Zinc metal production during the quarter was 29% lower y-o-y and 25% lower than Q3 in line with the mined metal production.
Integrated lead and silver metal production during the quarter increased by 16% and 65% respectively compared to corresponding prior quarter primarily due to higher volumes from the Sindesar Khurd mine.
Financial Year 2016 vs. Financial Year 2015Mined metal production was marginally higher in line with guidance. Refined metal production during the year was higher than mined metal production primarily on account of conversion of existing mined metal inventory and enhanced smelter efficiencies. Integrated zinc, lead and silver metal production during the year increased by 5%, 33% and 58% respectively. We had record integrated silver production of 13.6 million ounces due to higher volumes from the Sindesar Khurd mine.
Q4 | Q3 | Full Year | ||||||
Particulars (in'000 tonnes, or as stated) | FY2016 | FY2015 | % change YoY | FY2016 | % change QoQ | FY2016 | FY2015 | % change YoY |
Zinc International | 42 | 69 | (39)% | 51 | (17)% | 226 | 312 | (27)% |
Zinc -refined -Skorpion | 27 | 17 | 61% | 13 | - | 82 | 102 | (20)% |
Mined metal content - BMM | 15 | 16 | (1)% | 17 | (11)% | 63 | 59 | 7% |
Mined metal content - Lisheen | - | 37 | - | 21 | - | 81 | 150 | (46)% |
Production at Zinc International was lower at 42,000 tonnes post the closure of the Lisheen mine in November 2015 as per plan. The shortfall was partially made up by Skorpion which recorded production of 26,600 tonnes post the planned maintenance shutdown and slower than anticipated ramp-up post shutdown in Q3.
BMM production was stable during the quarter and produced 15,300 tonnes.
At the Gamsberg Project, pre-stripping commenced in July 2015 per the re-phased plan, with pre-stripping and surface work to access the ore body progressing as scheduled. To date we have excavated over 6 million tonnes of waste rock. Discussions are currently underway with various EPC vendors for the concentrator plant.
We continue to develop the project using a modular approach, with project execution carried out in a phased manner. This provides the ability to manage the capital expenditure program, and the flexibility to increase the ramp-up as market conditions improve.
Full year production at Zinc International was 226,000 tonnes, lower by 27% due to the ramp down of Lisheen in November 2015 as per its mine life, after 17 years of operation. In addition, metal production at Skorpion was lower by 20% at 82,000 tonnes due to the planned maintenance shutdown of the Skorpion refinery in Q3, temporary industrial action in Q2 and lower mine grade.
Vedanta Resources plc issued this content on 11 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 April 2016 06:25:22 UTC
Original Document: http://www.vedantaresources.com/media/199747/vedanta_q4_production_release_final.pdf
