Vale Swings to Profit in Third Quarter

By Rogerio Jelmayer 

SÃO PAULO--Brazilian mining company Vale SA swung to a net profit in the third quarter, because of a combination of an increase in revenues and lower costs with its derivative operations.

The company reported Thursday a net profit of $575 million in the third-quarter, compared with a net loss of $2.12 billion in the third quarter of 2015.

Vale reported a loss of $1.04 billion in its financial results, which included derivative operations, compared with a loss of $7.1 billion in the year ago period.

The company's net operating revenue picked up 13% in the period to $7.3 billion.

The increase in revenue came amid a hike in iron ore prices, which reached $65.50, in average, per metric ton in the third quarter, versus $62.11 in the year-ago period, according to Metal Bulletin Index, cited by Vale.

Vale's Ebitda, or earnings before interest, taxes, depreciation and amortization, increased 61% to $3.02 billion in the period.

Its net debt ended the period at $25.96 billion, up from $24.21 billion in the third-quarter a year ago.

The company invested $1.26 billion in its operations in the third-quarter, down from $1.88 billion in the third quarter of 2015.

Write to Rogerio Jelmayer at [e-mail]

(END) Dow Jones Newswires

October 27, 2016 05:13 ET (09:13 GMT)

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