Brazil's Vale Climbs Back to Profit on Rising Commodity Prices -- Update

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 [e-mail]

(END) Dow Jones Newswires

February 23, 2017 06:03 ET (11:03 GMT)

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