Brazil’s Vale registers 36% drop in Q3 2023 net income

Vale has reported $2.83bn as net income from continuing operations attributable to its shareholders in the third quarter of 2023.

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The company plans to pay $2bn to its shareholders in dividends and interest on capital. Credit: Mr. Tempter/ Shutterstock.

In the third quarter of 2023, net profit from continuing operations attributable to shareholders of Brazilian mining group Vale fell 36% year-on-year, earning $2.83 billion (14.11 billion reais) in the third quarter of 2022.

Vale said the most important factor affecting the financial results was the fact that foreign exchange gains were not included in the previous quarter.

Net operating income increased 7% to $10.62 billion in the third quarter of 2023 from $9.92 billion in the third quarter of 2022.

For the third quarter of 2023, expected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from continuing operations will be $4.48 billion, compared with $4.0 billion in the same period last year.

Adjusted EBITDA margin was 39% in the July-September 2023 quarter, an increase from 37% in the same period last year.

As of September 30, 2023, total capital expenditures were $1.46 billion and net debt was $10 billion.

“We continue to make significant progress in our strategy and business priorities,” said Vale CEO Eduardo Bartolomeo. With higher year-to-date production, higher average quality and a better sales-to-production gap in the quarter ’s reduction, Iron Solutions is still on track to meet expectations. We are advancing asset reviews in the energy transition metals space to achieve operational excellence.

Salobo III’s effective advancement in the copper sector has resulted in an increase in overall output and a reduction in unit costs. We will continue to execute our plans to establish Vale as a leader in creating and sharing value for all stakeholders.

The company also announced plans to distribute $2 billion in dividends and capital interest to shareholders on December 1, 2023.

A share repurchase plan of no more than 150 million shares has been approved by the board of directors.

The scheduled period of this share repurchase plan is 18 months

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