BRAZILIAN mining giant Vale yesterday said third-quarter profits rose more than 250 per cent from the year earlier to their highest level ever as the company benefited from rising iron prices and higher output.
Vale, the world’s largest iron ore miner, reported a record net income of 10.55bn reais (£3.9bn) that beat analysts estimates as demand for iron remains strong among emerging market nations such as China.
“These are the best results that Vale has ever reported in its history, marked by record operation revenues ... net profit and cash generation,” the firm said in a statement.
Earnings before interest, taxes, depreciation and amortisation, a key cash-generation indicator known as EBITDA, rose 164 per cent to 15.92bn reais compared to the same quarter a year earlier.
Vale had already released production volumes for the quarter, which rose 24 per cent from a year earlier to 82.6m tonnes – its second highest iron output ever and its highest since the global financial crisis took hold.
It invested $7.62bn in the first nine months of the year, excluding acquisitions, out of a total of $14.2bn planned for the year.