Vale SA, a Brazilian iron ore giant, experienced a 78.2% slump in net earnings in the three months to June due to weak demand and pricing. The company reported a net income of $US892 million, less than 50% of the $US1.837 billion net reported for the March quarter.
The fall was attributed to lower iron ore and nickel prices, as well as weaker nickel production. Vale reported revenue of $US8.44 billion for the three months to June, down 22.7% from a year ago and well below market forecasts.
Adjusted EBITDA of $US3.69 billion was also weaker than a year ago's $US6.55 billion and well below market forecasts of $US4.49 billion. The Brazilian miner produced 66.8 million tons of iron ore in 1Q23, up nearly 6% from a year earlier but under forecasts of 67.7 million tonnes.
Copper production increased by 18% to 67,000 tonnes, but nickel output fell 10.5% to 41,000 tonnes. Vale repurchased $US763 million worth of shares and paid $US1.80 billion in dividends, bringing total capital returned to shareholders to $US2.56 billion, or 4.3% of the company's market value at June 30.
Comments
No comment yet.