SAO PAULO/RIO DE JANEIRO (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 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.
Its 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 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, while realized prices of iron ore fines dropped 14%.
Vale also had anticipated it expected third-quarter earnings to reflect more than $900 million in new liabilities related to the deadly dam collapse near the city of Mariana, as the firm is set to sign, together with miners BHP and Samarco, a $30 billion compensation deal with authorities on Friday.
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