Brazil's Vale Climbs Back to Profit on Rising Commodity Prices -- Update
23 Fevereiro 2017 - 08:18AM
Dow Jones News
By Rogerio Jelmayer
SAO PAULO--Brazilian mining company Vale SA (VALE) swung to net
profit in the fourth quarter helped by rising commodity prices,
mainly for iron ore.
The company reported net profit of $525 million in the
fourth-quarter, a turnaround from a net loss of $8.57 billion a
year earlier, joining the list of international mining companies
that have benefited from the improved prices for raw materials.
For the full year, the company posted net earnings of $3.98
billion, reversing a net loss of $12.13 billion the previous
year.
Vale also benefited from the reduction in impairment charges
compared with the previous year. Impairments on assets and the
recognition of onerous contracts totaled $2.9 billion in 2016,
versus $9.37 billion in 2015.
The mining company's net operating revenue rose 64% to $9.69
billion in the fourth quarter from the same period the previous
year, making for a 15% gain for the full year to $29.36
billion.
Vale's adjusted earnings before interest, taxes, depreciation
and amortization more than tripled to $4.77 billion from $1.39
billion a year earlier.
Net debt fell to $25.07 billion at Dec. 31, down slightly from
$25.23 billion at the end of 2015.
The company invested a total of $5.48 billion in its operations
last year, compared with $8.4 billion in 2015.
-Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
February 23, 2017 06:03 ET (11:03 GMT)
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