Vedanta slashes dividend as commodity prices hit full year results

Vedanta Resources slashed its dividend by more than half as falling commodities prices hammered full-year profits.

The FTSE 250 multi-national miner said earnings before interest, tax, depreciation and amortisation slumped 37% to $2.34bn as shareholders took the brunt of the pain with the dividend cut to 30 cents from 63 cents.

Pre-tax losses narrowed to $4.9bn from $5.6bn, while revenues tumbled to $10.7bn from $12.9bn a year ago.

However, the company, which has large operations in India, said it was looking to take advantage of relation of oil and iron ore levies in the country.

In a country where GDP may double in the decade ahead, we look forward to playing our part in unlocking India's wealth of world-class energy and mineral resources,” said chairman Anil Agrawal.

“Naturally, we now hope for an improvement in the dynamics of the global commodity markets. Indeed, we are cautiously optimistic for 2017; based on the visibility we have now, we believe a recovery may be emerging, led by zinc.”

“This positive outlook contrasts with what has been a very tough year in the commodities space. We continue to feel the effects of the downward cycle - but we also know that history tells us to be patient. We are optimistic about the longer term and intend to be in the right place for when the upturn begins."