Brazilian miner and iron ore producer Vale has announced its financial results for the second quarter this year. The company has posted a net profit of $7.59 billion for the given quarter compared to a net profit of $995 million in the second quarter of 2020 and a net profit of $5.55 billion in the first quarter.
The company’s net revenues in the second quarter this year totaled $16.67 billion, up by 31.8 percent quarter on quarter and up by 121.6 percent year on year.
Adjusted EBITDA in the second quarter was $11.04 billion, up from $8.35 billion in the first quarter. The company’s adjusted EBITDA margin in the given period was 66 percent unchanged from the previous quarter.
According to the company’s statement, iron ore prices had a second round of increases in the end of the first quarter and the maintenance of constrained iron ore supply and the demand recovery from China, kept the market undersupplied, lifting prices above $200/mt. Going forward on the year, Vale expects the supply volumes to increase compared to the first half this year, while iron ore demand is expected to be impacted by production cuts due to environmental restrictions in China.