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

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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.


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