Vale Reports First Quarter Net Income of $ 5.5 Billion From $ 239 Million Last Year
By Jeffrey T. Lewis
SÃO PAULO – Brazilian mining giant Vale SA announced that its profits soared in the first quarter from a year earlier amid strong demand from China from a low a year earlier due to restrictions from the Covid-19 pandemic in early 2020.
Vale said on Monday it had net income of $ 5.5 billion over the period, up from $ 239 million in the first quarter of 2020. Net operating income rose to $ 12.6 billion from $ 7 billion. billion dollars the previous year. The company reported adjusted earnings before interest, taxes, depreciation and amortization of $ 8.4 billion, up from $ 2.9 billion a year earlier.
The company said earlier this month that iron ore production was up 14.2% from the first quarter of 2020, and iron ore sales were up 14.8% from the previous quarter. ‘last year. China’s net operating income jumped to $ 7 billion in the first quarter of this year, from $ 3.2 billion in the same period a year earlier, Vale said.
Demand for iron ore in China was stronger in the first quarter compared to a year earlier, as the Asian country’s gross domestic product surged, increasing 18.3% in the same period. China’s rapid GDP expansion was in part due to an economic crisis in early 2020 caused by social distancing measures linked to the coronavirus pandemic.
“Without a doubt, it is very important for Vale that China is one of the economies that has recovered the most quickly from the crisis,” said Ilan Arbetman, analyst at Ativa Investimentos. Vale’s production of premium iron ore should also help the Brazilian company, Arbetman said, as China “has raised the bar for quality products and Vale’s production from its operations in Carajas is higher. pure “than that of other sources.
Vale said demand from China could impact the remainder of 2021 due to environmental restrictions, but added that the expected high steel prices in China and outside of China should also help support iron ore bounties.
Write to Jeffrey T. Lewis at [email protected]
(END) Dow Jones News Wire
April 26, 2021 7:41 PM ET (11:41 PM GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.