By Dean Seal
Brazilian iron-ore mining company Vale experienced yet another decrease in profit as a rise in sales volume was unable to offset the drop in iron prices.
For the second quarter, Vale reported net income from continuing operations of $892 million, compared to $4.09 billion in the same quarter last year. Net operating revenue also declined from $11.16 billion to $9.67 billion.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from continuing operations fell to $3.87 billion, down from $5.25 billion in the second quarter of the previous year.
Vale saw a decrease in the average realized price per metric ton of iron-ore fines, which dropped from $137.90 to $111 per ton over the past year. Additionally, the price for iron-ore pellets, a premium product, declined from $201.30 to $160.40 per ton.
Despite the challenging market conditions, Vale managed to sell 63.3 million metric tons of iron ore in the second quarter, slightly higher than the 62.8 million tons sold last year. The sales of pellets remained steady at 8.8 million tons, matching the numbers from the year-ago quarter.
Following these financial announcements, Vale’s American depositary shares rose by 1.4% to $15 in after-hours trading.