Vale returns to profit in Q3 amid higher iron ore prices

Friday, 25 October 2019 13:38:34 (GMT+3)   |   Istanbul
       

Brazil-based miner Vale has announced its financial results for the third quarter and the first nine months of the current year. In the third quarter, the company recorded a net profit of $1.65 billion, compared to the net loss of $133 million recorded in the second quarter, amid higher iron ore prices. The increase was also due to provisions of $1.9 billion related to the Brumadinho dam rupture, to the decommissioning of the Germano dam and to the Renova Foundation, all recognized in the second quarter of 2019. In the third quarter of 2018, Vale had posted a net profit of $1.41 billion.

In the third quarter of this year, Vale’s net operating revenues increased by 11.3 percent quarter on quarter to $10.22 billion, while rising by 7.1 percent year on year. The company’s adjusted EBITDA in the same quarter amounted to $4.6 billion, compared to $3.1 billion in the second quarter and $4.32 billion in the corresponding period of 2018, due to a lower impact related to the Brumadinho incident.

Meanwhile, in the January-September period of this year, the company recorded a net loss of $121 million, mainly as a result of provisions and incurred expenses related to the Brumadinho dam rupture, as compared to a net income of $3.07 billion recorded in the first nine months of 2018. In the same period, the company’s net operating revenues totaled $27.6 billion, rising by 3.2 percent, while its adjusted EBITDA amounted to $7.05 billion, decreasing by 41.9 percent, both year on year.

Vale stated that in the given quarter its iron ore and pellets sales volume increased by 20.2 percent compared to the previous quarter to 85.1 million mt, mainly due to the resumption of halted production and operational improvements in the Northern System and Ponta da Madeira port operations, which were impacted by unusual weather conditions in  the second quarter.


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