Vale's third-quarter profit falls 15% on dam collapse provisions, lower ore prices
Q3 net profit of $2.41 bln beats analysts' estimates
Core profit in line with market estimates
New CEO Pimenta wants to speed up iron ore quality upgrade
Adds details of the earnings report in paragraphs 9-10, new guidance on copper costs in paragraph 11
RIO DE JANEIRO/SAO PAULO, Oct 24 (Reuters) -Brazilian miner Vale, one of the world's largest iron ore producers, said on Thursday its third-quarter net profit fell 15% from a year earlier, hit by lower prices of the steel-making ingredient and provisions related to the Mariana dam collapse.
Still, Vale VALE3.SA posted a $2.41 billion net profit for the quarter ended in September, well above analysts' estimates for a $1.65 billion profit as polled by LSEG.
Vale reported a 10% decline in its net revenue year-on-year to $9.55 billion, almost in line with the $9.44 billion analysts had expected.
It had already released earlier this month its third-quarter sales and output report, which showed the highest iron ore production for a quarter since 2018, but realized prices of iron ore fines dropping 14%, weighingon its profit.
Its core profit as measured by adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $3.62 billion in the quarter, down 18% from a year earlier and also broadly meeting analysts' estimates of $3.61 billion.
Vale said in the earnings report it booked an additional $956 million provision related to the deadly collapse of a dam at an iron ore mine owned by Samarco, a joint venture between Vale and BHP, near the Brazilian city of Mariana in 2015.
The firm had already anticipated a similar impact last week as a final compensation deal approaches, with Vale saying on Thursday that it was set to sign the deal on Friday after years of talks with Brazilian authorities.
The most recent discussions were for the three miners to pay up 170 billion reais ($30 billion), with 100 billion reais of that to be paid over 20 years directly to public authorities.
Vale's new management is eyeing a better quality portfolio with more focus on the client, CEO Gustavo Pimenta said in the earnings report. Pimenta, Vale's former chief financial officer, joined as CEO earlier this month.
Pimenta said Vale aims to speed up efforts to offer high-quality product in its main iron ore business, while adding it plans to grow its base metal unit, particularly in copper.
In a separate filing on Thursday evening, Vale also raised its all-in cost guidance for copper for the year.
($1 = 5.6653 reais)
Reporting by Marta Nogueira in Rio de Janeiro and Andre Romani in Sao Paulo; Editing by Kylie Madry and Sonali Paul
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
