Vale’s third quarter Brazilian profit is lower than estimate for depreciation and falling iron ore prices


The logo of Brazilian mining company Vale SA can be seen in Brumadinho, Brazil on January 29, 2019. REUTERS / Adriano Machado

RIO DE JANEIRO, Oct.28 (Reuters) – Brazilian mining company Vale SA (VALE3.SA) on Thursday reported third-quarter net profit of $ 3.9 billion, significantly lower than analysts’ forecast of $ 6.2 billion dollars, due to falling iron ore prices and a depreciation in his coal business.

While Vale’s net profit fell almost half from the previous quarter, it jumped 34% from the previous year.

Vale, one of the world’s largest iron ore miners, said its quarterly figures were shaken by iron ore prices which plunged 31% during the review period, as well as a hiatus. work at its Sudbury nickel mine in Canada which resulted in lower production. .

The miner said he had a depreciation charge on his coal business that amounted to nearly $ 2 billion, but did not give further details.

In the previous quarter, the company disclosed a depreciation of its coal assets resulting from a “weaker long-term price assumption for metallurgical and thermal coal”.

Vale, one of Brazil’s largest companies, said on Thursday it would repurchase 200 million shares, or about 4.1% of the company’s outstanding shares.

“The new program reflects the confidence of the company’s management in Vale’s potential to create and share value on a consistent basis.”

The company reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 6.9 billion.

Reporting by Roberto Samora, Marta Nogueira and Marcelo Rochabrun; Editing by Sherry Jacob-Phillips

Our Standards: The Thomson Reuters Trust Principles.


Leave A Reply