Vale on Wednesday said its third-quarter net profit nearly doubled as the company boosted iron ore production and inventories at Brazilian mining after a deadly dam disaster in January 2019.
Miner Vale reported on Wednesday that its third-quarter net profit doubled early on as the company increased production and stockpiles of iron ore in its mining process following a deadly dam disaster in January 2019.
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Iron ore sales increased by 20%
The results were driven by a 26% increase in realized prices for iron ore and 20% higher iron ore sales volumes in the quarter, Vale said.
The world's second-largest producer of the main steelmaking ingredient earlier this month reported a 31% recovery in iron ore production compared to the second quarter of Vale's mining.
It reached its best result in two years – 88,7 million tons – when several mines that were interrupted after the Brumadinho dam collapse increased production or started operating.
Vale recorded adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $6,1 billion, up from $4,6 billion a year ago in its mining.
Vale sees profit rise 192% and reach US$ 2,9 billion in the third quarter
Vale recorded a profit of US$ 2,908 billion in the third quarter of 2020, the company said this Wednesday (28), an increase of 192% compared to the profit of US$ 995 million in the second quarter and 76% on the US$ 1,654 billion from the same period last year.
The expectation was for a profit of US$ 3,656 billion, according to the median estimate of analysts compiled by Refinitiv. According to the mining company, the better result was mainly due to the higher Ebitda in the quarter and the improvement in the result of participations, since in the second quarter it was strongly impacted by provisions for future expenses with Samarco and Fundação Renova.
