VALE: Profit Increases 3.9-fold On Exchange Appreciation And Derivatives

(RTTNews) - Brazilian miner Vale's net income increased 3.9-fold in the third quarter compared to the same period in 2016, totaling R$ 7.143 billion. In comparison with the previous quarter, Vale's profit rose 119-fold. In U.S. dollar, net income totaled US$ 2.230 billion, also up 3.9 times, but below the estimates (US$ 2.56 billion).

According to the miner, the result was favored by non-cash gains in the monetary and exchange variations in the quarter. The company lists the impact of US$ 452 million in foreign exchange variations due to the appreciation of the Brazilian real against the U.S. dollar and US$ 295 million in currency and interest rate derivatives.

The company's net operating revenue grew 31% in the fourth quarter, from R$ 21.831 billion a year earlier to R$ 28.6 billion in the third quarter of 2017. In U.S. dollars, net operating revenues totaled US$ 9.050 billion in the quarter, a 41.4% increase, in line with estimates (US$ 9.049 billion).

Vale's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) by non-recurring and non-cash effects increased by 37.5% to R$ 13.25 billion in the quarter. In U.S. dollar, EBITDA increased 41.4% year-on-year to US$ 4.192 billion, almost in line with estimates (R$ 4.283 billion). In the third quarter, Vale invested US$ 863 million, down 25.4% over the same quarter of the previous year.