Vale sees increase in EBITDA in Q3

Brazil-based miner Vale has announced its financial results for the third quarter of the current year, reporting a net profit of $575 million, decreasing from the net profit of $1.1 billion recorded in the second quarter of this year, mostly as a result of foreign exchange rate variations in the given quarter. In the third quarter of 2015, Vale had posted a net loss of $2.11 billion. 

In the third quarter this year, Vale’s adjusted EBITDA increased by 27 percent quarter on quarter to $3.02 billion, mainly driven by EBITDA improvements in its Ferrous Minerals, Base Metals and Coal segments, while on year-on-year basis the company achieved an increase of 61 percent in adjusted EBITDA.

 

Vale stated that for the coming period it expects the market for iron ore to remain stable, as the current credit availability in China should provide support for the economy. However, steel demand and production are expected to ease towards the end of the year due to seasonality.