By Rogerio Jelmayer
SAO PAULO--Brazilian mining giant Vale SA posted a net-profit
increase of 17.3% in the second quarter, as lower debt-service
costs helped to offset lower revenue in the period.
Vale, the world's largest iron-ore producer, on Thursday
reported a second-quarter net profit of $1.68 billion, up from
$1.43 billion a year ago.
The company's debt-service costs totaled $215 million in the
second quarter, down from $983 million the previous year.
Vale's net revenue dropped 29.7% to $6.96 billion.
Its earnings before interest, taxes, depreciation and
amortization, or Ebitda, tumbled 46.1% in the period to $2.2
billion.
Vale was able to reduce its cost and expenses in the period, to
$4.93 billion, compared with $6 billion in the second quarter of
2014.
The company invested a total of $2.1 billion in its operations
in the period, down from $2.47 billion one year ago.
In a separate statement, Vale said it concluded a previously
announced sale of four Valemax ships--each capable of hauling
400,000 tons of iron ore--to China Merchants Energy Shipping Co.
Ltd. for a total of $448 million. Vale said it expects to receive
this amount upon the delivery of the ships expected to take place
in September.
The sale is part of the company's disinvestment plan from
certain noncore assets. In the second quarter, Vale sold four
Valemax ships to China Ocean Shipping Co., or Cosco, for a total
amount of $445 million.
Vale is the world's largest iron-ore producer, and China is the
biggest consumer and Vale's top customer.
In a separate statement, Vale said it agreed to sell four
Valemax ships--each capable of hauling 400,000 tons of iron ore--to
China Merchants Energy Shipping Co. Ltd. for a total of $448
million. Vale said it expects to conclude the sale in the third
quarter.
The sale is part of the company's disinvestment plan in certain
noncore assets. In the second quarter, Vale sold four Valemax ships
to China Ocean Shipping Co., or Cosco, for a total amount of $445
million.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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