Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Brazil miner Vale's profit slips but beats forecasts

Economy Jul 28, 2022 18:43
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Brazilian mining company Vale SA logo and trading symbol are displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., December 6, 2017. REUTERS/Brendan McDermid

SAO PAULO (Reuters) -Brazilian miner Vale SA said on Thursday its second-quarter net income fell 18.9% from the previous year, hit mainly by a sharp decline in iron ore prices and escalating costs, but results still topped analysts' estimates.

Vale, one of the world's largest iron ore miners, posted net income of $6.15 billion, above expectations of $2.837 billion, according to a Refinitiv forecast. Recurring net income, however, fell 49.8% from the year before.

Vale is the latest global miner to be weighed down by higher costs tied to inflation and lower commodity prices. The company flagged that its iron ore, nickel and copper units had been affected by price increases in fuel and freight expenses, among others.

While Vale's net operating revenue fell 32% from a year earlier, its expenses grew 8% in the same period, dragging down its overall results.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $5.25 billion, down 53.1% year-on-year.

In the three months ended in June 30, Vale realized $113.3 per tonne of iron ore, down from the $184.8 per tonne in the same period of 2021.

The company also said that expected expenses related to the 2019 Brumadinho dam disaster that killed hundreds of people fell $1 billion to $7.2 billion due to foreign exchange effects.

Brazil miner Vale's profit slips but beats forecasts
 

Related Articles

Cryptoverse: Bitcoin miners get stuck in a bear pit
Cryptoverse: Bitcoin miners get stuck in a bear pit By Reuters - Sep 27, 2022

By Medha Singh and Lisa Pauline Mattackal (Reuters) - Spare a thought for the beleaguered bitcoin miner. In late 2021, miners were the toast of the town with a surefire path to...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email