Vedanta plans capex cuts, "deep restructuring" in Zambia.

Vedanta Resources Plc, hit by weaker commodity prices, said it planned 'hundreds of millions of dollars' in capital spending cuts and deferrals, while looking at a 'deep restructuring' of its struggling Zambian copper business.

Vedanta spent $1.42 billion on capital projects in year ended June 30, 2014, down from $2.02 billion a year earlier.

London-listed Vedanta, which has most of its operations in India, joins other mining and energy companies in scrambling to cut costs, review operations and manage debt as prices of iron ore, copper, oil and other commodities weaken.

Vedanta reported recently that its earnings before interest, tax, depreciation and amortisation ( EBITDA) fell 11 per cent to $1.02 billion in the third quarter ended Dec. 31, while revenue rose only marginally to $3.36 billion.

Vedanta's shares fell as much as 4.8 per cent to 353.21 pence in morning trading. The stock has lost almost 70 per cent of its value in the past seven months.

Copper prices have been flirting with near 5-1/2-year lows, while benchmark Brent crude has shed 60 per cent in the last seven months. Vedanta is exposed to oil and gas prices through its Cairn India unit.


ET