Sesa Sterlite Limited: Production Release for the Fourth Quarter and Full Year Ended 31 March 2014
MUMBAI, India, April 10, 2014 /PRNewswire/ --
Sesa Sterlite Limited ("Sesa Sterlite" or "the Company") today announced its production results for the fourth quarter (Q4) and Full Year ended 31 March 2014.
(Logo: http://photos.prnewswire.com/prnh/20140117/663814 )
Highlights of the Quarter
- Full year record production of Oil & Gas, driven by production ramp-up in Rajasthan block
- Higher integrated refined metal production and stable mined metal production for the full year at Zinc India
- First metal tapping at the BALCO 325kt aluminium smelter during Q4
- Strong utilizations at Tuticorin copper smelter; 2nd 80MW unit of power plant commissioned during Q4
Zinc - India Business
Q4 Q3 Full Year
Particulars (in '000
tonnes, or as FY2014 FY2013 % change FY2014 FY2014 FY2013 % change
stated) YoY YoY
ZINC INDIA
Mined metal content 200 260 (23%) 220 880 870 1%
Concentrate Sales - Zinc
(MIC) - 61 - - - 61 -
Refined Zinc - Total 182 182 - 196 749 677 11%
Refined Zinc -
Integrated 179 181 (1%) 196 743 660 13%
Refined Zinc - Custom 4 0 - - 6 17 -
Refined Lead - Total [1] 38 35 10% 27 130 125 4%
Refined Lead -
Integrated 31 32 (2%) 27 118 107 10%
Refined Lead - Custom 7 3 - - 12 18 -
Saleable Silver - Total
(in tonnes) [2] 91 108 (16%) 73 350 374 (6%)
Saleable Silver -
Integrated
(in tonnes) 68 91 (25%) 72 301 288 4%
Saleable Silver - Custom
(in tonnes) 23 17 34% 1 49 86 (43%)
Mined metal production for the year was 880,000 tonnes, marginally higher than the previous year. Production in H2 was lower than what we had planned initially due to slower than expected ramp up of underground mining projects and changes in mining sequence, wherein preference was given to primary mine development.
Integrated production of refined metal during the year was significantly higher due to operational efficiencies and higher availability of our smelters. Full year integrated production of refined zinc, lead and silver were higher by 13%, 10% and 4% respectively.
Zinc - International Business
Q4 Q3 Full Year
Particulars (in '000
tonnes, or as % change % change
FY2014 FY2013 FY2014 FY2014 FY2013
stated) YoY YoY
Zinc International 83 102 (19%) 84 364 426 (15%)
Refined Zinc -Skorpion 33 36 (9%) 23 125 145 (14%)
Mined metal content -
BMM and
Lisheen 50 65 (24%) 62 239 280 (15%)
Refined zinc production at Skorpion was higher than Q3 by 10,000 tonnes consequent to ramp up after an unplanned shutdown in Q3 FY2014. However, this was offset by lower mined metal production at BMM and Lisheen due to lower ore grades. Total production in Q4 remained in line with Q3, and the full year production was lower by 15%. This was lower on account of disruptions in production caused by accidents at Lisheen and BMM in Q1 FY2014 and the unplanned shutdown at Skorpion in Q3.
Oil & Gas Business
Q4 Q3 Full Year
% % change
Particulars FY2014 FY2013 change FY2014 FY2014 FY2013
YoY
YoY
OIL AND GAS (boepd)
Average Daily Gross
Operated
Production (boepd) 224,429 - - 224,493 218,651 - -
Rajasthan 190,881 - - 186,359 181,530 - -
Ravva 24,225 - - 27,857 27,386 - -
Cambay 9,323 - - 10,277 9,735 - -
Average Daily Working
Interest
Production (boepd) 142,796 - - 140,830 137,127 - -
Rajasthan 133,616 - - 130,451 127,071 - -
Ravva 5,451 - - 6,268 6,162 - -
Cambay 3,729 - - 4,111 3,894 - -
Total Oil and Gas
(million boe)
Oil & Gas- Gross 20.20 - - 20.65 40.45 - -
Oil & Gas-Working
Interest 12.85 - - 12.96 30.58 - -
Note: Sesa Sterlite acquired a 38.7% stake in Cairn India Limited, effective 26th August 2013. This has increased the company's stake in Cairn India from 20.1% to 58.8%. The total oil and gas production (in million boe) in the 'Full Year FY2014 (Actual)' are for the period from 26 August 2013. However, the average daily gross operated and working interest production numbers in 'Full Year FY2014 (Actual)'are on proforma basis for twelve months.
Average gross production for FY2014 was 218,651 barrels of oil equivalent per day (boepd), 6% higher than the previous year. During the year, the Rajasthan block achieved a landmark oil production of 200 million barrels, and a 200,000 boepd production milestone in March 2014.
In Q4 FY2014, average gross operated production and working interest production were 11% and 13% higher at 224,429 boepd and 142,796 boepd, respectively, driven primarily by the production ramp-up at Rajasthan. In Rajasthan, infill drilling continues across all major fields and has driven a 13% increase in the production rate to 190,881 boepd. Development Area (DA1), which includes the Mangala and Aishwariya fields produced a gross average of 162,245 boepd and DA2, which includes the Bhagyam field produced a gross average of 28,636 boepd.
In Q4 FY2014, production at Cambay was 50% higher yoy at 9,323 boepd, due to the infill drilling campaign that was completed in FY2013. Production at Ravva was lower in Q4 FY2014 at 24,225 boepd though recovery rates continue to be over 47%.
Iron Ore Business
Q4 Q3 Full Year
Particulars (in million
dry metric FY2014 FY2013 % change FY2014 FY2014 FY2013 % change
tonnes, or as stated) YoY YoY
IRON ORE [3]
Sales 0.0 - - - 0.0 3.1 -
Goa - - - - - 3.0 -
Karnataka 0.0 - - - 0.0 0.1 -
Production of Saleable
Ore 1.5 - - - 1.5 3.7 (60%)
Goa - - - - - 3.7 -
Karnataka 1.5 - - - 1.5 - -
Production ('000 tonnes)
Pig Iron 133 104 28% 139 510 308 66%
Met Coke 119 94 27% 116 408 331 23%
In Karnataka, we resumed mining on December 28, 2013 and optimized our approved annual capacity of 2.29mtpa, which resulted in a production of 1.5mt this year. However, only 27 kt was sold during the year.
At Goa, we participated in e-auctions of inventory and sold 0.3 million tonnes during the quarter but these were not accounted for as sales since the dispatches did not take place during the quarter. These dispatches have commenced in April.
Regarding mining in Goa, the Expert committee appointed by the Supreme Court submitted its second interim report to the Court on 24 March 2014. The Expert committee, in its report, recommended that 27.5mtpa was a sustainable extraction level in the state, but suggested that the ideal permissible limit be 20mtpa until a scientific study is completed within 12 months. The decision of the Supreme Court is awaited on this matter.
Copper - India / Australia Business
Full
Q4 Q3 Year
Particulars (in
'000 tonnes, or
as FY2014 FY2013 % change FY2014 FY2014 FY2013 % change
stated) YoY YoY
COPPER- INDIA /
AUSTRALIA
Copper -
Cathodes 98 86 14% 99 294 353 (17%)
Copper - Mined
metal content 1 7 (85%) 5 18 26 (32%)
Power sales -
2X80MW Tuticorin
power
plant(million
units) 144 35 - 162 601 42 -
The Tuticorin copper smelter performed well at 98% utilisation in Q4. The full year production was 17% lower due to the temporary closure in Q1 FY2014. As announced earlier, we are scheduled to have a maintenance shutdown of this smelter for approximately 22 days in Q1.
The company received the final regulatory approval for the second unit of the 2x80MW power plant in March 2014. Subsequently, we commissioned and capitalized this unit and generated 25 million units.
As announced earlier, production at our Australian mine remained suspended due to a mud rush at one of the stopes in January 2014. We are working with Work Place Standards Authorities at Tasmania to resume operations.
Aluminium Business
Full
Q4 Q3 Year
Particulars(in '000 % %
tonnes, or as FY2014 FY2013 change FY2014 FY2014 FY2013 change
stated) YoY YoY
ALUMINIUM
Alumina-Lanjigarh 227 - - 181 524 527 (1)%
Total Aluminum
Production 200 195 2% 200 794 774 3%
Jharsuguda-I 135 133 1% 136 542 527 3%
Korba-II 64 62 3% 64 251 247 2%
Korba-III [4] 1 - - - 1 - -
The Lanjigarh alumina refinery operated at 91% of its rated capacity and produced 227,000 tonnes in Q4 FY2014, 25% higher than Q3. Full year production was 524,000 tonnes, after restarting the refinery in July 2013. This resulted in a steady increase of alumina feed from Lanjigarh to our smelters, contributing to 28% of the smelters' alumina requirements in FY2014 and 49% in Q4.
In Q4, production at Jharsuguda Plant I and Korba Plant II smelters continued to remain stable and both these plants operated above their rated capacities.
We commenced the Korba-III 325kt smelter with the first metal tapping in Q4. We produced around 900 tonnes of aluminium with power sourced from the BALCO 270MW power plant. We expect to ramp up significantly during FY2015 consequent to the commissioning of the 1,200MW power plant, which expects to receive regulatory approvals in Q1 FY2015.
Power Business
Q4 Q3 Full Year
Particulars (in million
units) FY2014 FY2013 % change FY2014 FY2014 FY2013 % change
YoY YoY
POWER
Total Power Sales 2,093 2,638 (21%) 2,196 9,374 10,129 (7%)
Jharsuguda 2,400MW [5] 1,701 2,073 (18%) 1,827 7,625 7,530 1%
BALCO 270MW 84 282 (70%) 75 390 1,241 (69%)
MALCO 231 204 13% 236 911 847 8%
HZL Wind Power 77 78 (2)% 59 448 511 (12%)
Power sales were 20% lower in Q4 as compared to corresponding prior period, primarily due to lower sales at our Jharsuguda 2,400MW and BALCO 270MW power plants on account of weak market demand and evacuation constraints. The Jharsuguda 2,400MW operated at a plant load factor of 35%.
The boiler light up of the first 660MW unit of the 1,980MW Talwandi Sabo power plant was achieved in Q3 and synchronization was completed subsequently. Coal logistics were established in Q4 and we expect to commence trial runs in Q1 FY2015.
Note: Figures in previous periods have been regrouped or restated, wherever necessary to make them comparable to current period.
Production Summary (Unaudited)
(in '000 tonnes, except as stated)
Q4 Q3 Full Year
Particulars
FY 2014 FY 2013 % change FY 2014 FY 2014 FY 2013 % change
YoY YoY
Zinc India
Mined metal content 200 260 (23%) 220 880 870 1%
Concentrate Sales-
Zinc (MIC) - 61 - - - 61 -
Refined Zinc (Total) 182 182 0% 196 749 677 11%
Refined Zinc (
Integrated) 179 181 (1%) 196 743 660 13%
Refined Zinc (
Custom) 4 0 - - 6 17 -
Refined Lead (Total)
[1] 38 35 10% 27 130 125 4%
Refined Lead (
Integrated) 31 32 (2%) 27 118 107 10%
Refined Lead (
Custom) 7 3 - - 12 18 -
Saleable Silver -
Total
(in tonnes) [2] 91 108 (16%) 73 350 374 (6%)
Saleable Silver -
Integrated
(in tonnes) 68 91 (25%) 72 301 288 4%
Saleable Silver -
Custom
(in tonnes) 23 17 34% 1 49 86 (43%)
Zinc
International(Total) 83 102 (19%) 84 364 426 (15%)
Zinc -refined
Skorpion 33 36 (9%) 23 125 145 (14%)
Mined metal content(
BMM and
Lisheen) 50 65 (24%) 62 239 280 (15%)
Oil and Gas
Average Daily Gross
Operated
Production (boepd) 224,429 - - 224,493 218,651 - -
Rajasthan 190,881 - - 186,359 181,530 - -
Ravva 24,225 - - 27,857 27,386 - -
Cambay 9,323 - - 10,277 9,735 - -
Average Daily Working
Interest
Operated Production
(boepd) 142,796 - - 140,830 137,127 - -
Rajasthan 133,616 - - 130,451 127,071 - -
Ravva 5,451 - - 6,268 6,162 - -
Cambay 3,729 - - 4,111 3,894 - -
Total Oil and Gas
(million boe)
Oil & Gas - Gross 20.20 - - 20.65 40.45 - -
Oil & Gas ( Working
Interest) 12.85 - - 12.96 30.58 - -
Iron Ore [3]
Sales 0.0 - - - 0.0 3.1 -
Goa - - - - - 3.0 -
Karnataka 0.0 - - - 0.0 0.1 -
Production of
Saleable Ore 1.5 - - - 1.5 3.7 (60%)
Goa - - - - - 3.7 -
Karnataka 1.5 - - - 1.5 0.0 -
Production ('000
tonnes)
Pig Iron 133 104 28% 139 510 308 66%
Met Coke 119 94 27% 116 408 331 23%
Q4 Q3 Full Year
Particulars
FY 2014 FY 2013 % change FY 2014 FY 2014 FY 2013 % change
YoY YoY
Copper( India /
Australia
Copper (Mined metal
content) 1 7 (85%) 5 18 26 (32%)
Copper (Cathodes) 98 86 14% 99 294 353 (17%)
Power sales - 2X 80MW
Tuticorin
power plant(million
units) 144 35 - 162 601 42 -
Alumina
Lanjigarh 227 - - 181 524 527 (1)%
Aluminium
Total Aluminum
Production 200 195 2% 200 794 774 3%
Jharsuguda 135 133 1% 136 542 527 3%
Korba-II 64 62 3% 64 251 247 2%
Korba-III [4] 1 - - - 1 - -
Power (in million
units)
Total Power Sales 2,093 2,638 (21%) 2,196 9,374 10,129 (7%)
Jharsuguda 2,400MW
[5] 1,701 2,073 (18%) 1,827 7,625 7,530 1%
Balco 270MW power
Sales 84 282 (70%) 75 390 1,241 (69%)
MALCO 231 204 13% 236 911 847 8%
HZL Wind Power 77 78 (2)% 59 448 511 (12%)
Note: Sesa Sterlite acquired a 38.7% stake in Cairn India Limited, effective 26th August 2013. This has increased the company's stake in Cairn India from 20.1% to 58.8%. The total oil and gas production (in million boe) in the 'Full Year FY2014 (Actual)' are for the period from 26 August 2013. However, the average daily gross operated and working interest production numbers in 'Full Year FY2014 (Actual)'are on proforma basis for twelve months.
- Including captive consumption of 1,991 tonnes in Q4 FY2014 vs 1,777 tonnes in Q4 FY2013, and 7,262 tonnes in FY2014 vs 6,500 tonnes in FY2013
- Excluding captive consumption of 10 tonnes in Q4 FY2014 vs 9 tonnes in Q4 FY2013 and 38 tonnes in FY2014 vs 34 tonnes in FY2013
- Iron Ore sales include internal consumption of nil in Q4 FY2014 vs nil in Q4 FY2013 and nil in FY2014 vs 0.17 million tonnes in FY2013.
- Production under trial run
- Includes production under trial run of nil in Q4 FY2014 vs. nil in Q4 FY2013 and nil in FY2014 vs 795 million units in FY2013.
About Sesa Sterlite Limited
Sesa Sterlite Limited ("Sesa Sterlite") is one of the world's largest diversified natural resources companies. Our business primarily involves exploring, extracting and processing minerals and oil & gas. We produce oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power and have a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka. Sesa Sterlite has a strong position in emerging markets with over 80% of its revenues from India, China, East Asia, Africa and the Middle East.
Sustainability is at the core of Sesa Sterlite's strategy, with a strong focus on health, safety and environment and on enhancing the lives of local communities.
Sesa Sterlite is a subsidiary of Vedanta Resources plc, a London-listed company. Sesa Sterlite is listed on the Bombay Stock Exchange and the National Stock Exchange in India and has ADRs listed on the New York Stock Exchange.
Sesa Sterlite Limited
(Formerly known as Sesa Goa Limited)
Vedanta, 75, Nehru Road
Vile Parle (East), Mumbai - 400 099
http://www.sesasterlite.com
Registered Office:
Sesa Ghor, 20 EDC Complex
Patto, Panaji (Goa) - 403 001
CIN: L13209GA1965PLC000044
Disclaimer
This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
For further information, please contact:
Ashwin Bajaj
Senior Vice President - Investor Relations
[email protected]
Tel: +91-22-6646-1531
SOURCE Sesa Sterlite Limited
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