Brazil-based miner
Vale has announced its financial results for the fourth quarter and the full year of 2013, reporting a net loss of $6.45 billion, compared to a net loss of $2.61 billion in the same quarter of the previous year, as a result of an income tax settlement with the Brazilian government. The company's sales revenues in the fourth quarter last year amounted to $13.4 billion, rising by 9.3 percent year on year.
Vale saw an operating profit of $2.33 billion in the given quarter, compared to an operating loss of $1.18 billion in the corresponding quarter of the previous year.
In 2013,
Vale recorded a net profit of $584 million, decreasing significantly compared to a net profit of $5.45 billion in the previous year. The company's sales during the given period increased by 0.7 percent year on year to $48.05 billion, while its operating profit amounted to $14.8 million, rising by 58.2 percent compared to 2012.
According to
Vale, this year
production is expected to continue to grow, mostly due to Australia and, to a lesser extent,
Brazil and India. This additional supply in the seaborne market may lead to a decline in Chinese domestic ore
production alongside a decline in
production from non-traditional miners in countries such as Malaysia, Iran and Indonesia, due to their elevated and increasing costs. Overall, in spite of this expansion of supply, the miner expects the
iron ore market to remain balanced, as the steel sector grows smoothly, with China remaining the driving force. Beyond China, demand for
iron ore will possibly edge up marginally, along with the recovery in developed markets.
During the fourth quarter,
Vale produced 81.25 million mt of
iron ore, falling 1.8 percent, mostly due to the lack of operational flexibility in the Northern System and the heavy rainfall in the Southeastern System during the quarter, while the miner's pellet
production increased by 11.1 percent to 10.4 million mt, both year on year.
Vale's metallurgical coal output in the given quarter increased by 1.5 percent year on year to 1.85 million mt, while its nickel output was 68,000 mt, up 6.1 percent year on year.
In 2013,
Vale's
iron ore production amounted to 299.8 million mt, falling three percent, while its pellet
production declined by 12.2 percent to 39 million mt, both compared to 2012.
Vale produced 6.88 million mt of metallurgical coal in 2013, up 35.5 percent year on year. The company's nickel output in 2013 totaled 260,000 mt, increasing by 9.9 percent year on year.