Vale’s Q3 profit dips 15% on lower iron ore prices
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- Vale press release (NYSE:VALE): Q3 GAAP EPS of $0.56 beats by $0.10.
- Net income attributable to Vale’s shareholders fell 15% Y/Y to $2.41B.
- Revenue of $9.55B (-10% Y/Y).
- Iron ore shipments increased by 1.3Mt (+2%) Y/Y, driven by an 18% rise in pellet sales due to higher production and strong demand.
- The average realized iron ore fines price was $90.6/t, $7.6/t lower q/q despite iron ore reference prices having decreased by $12.0/t.
- Proforma adjusted EBITDA decreased by 21% Y/Y, totaling $3.7B. Higher volumes and lower unit costs, particularly in iron ore, partly offset the impact of lower prices.
- Free cash flow was $179M, $947M lower Y/Y, largely reflecting the decrease in EBITDA.