Vale closes 3Q2017 with US$ 2.2 billion net income
Vale announced Thursday (Oct.26), its financial result for the third quarter of 2017. Among the positive highlights of the period is a net income of US$ 2.2 billion and the increase of 54% in cash flow generation, compared to the last quarter.
The adjusted EBITDA was of US$ 4.2 billion. The result led our debt to fall to US$ 21.1 billion. “The quality of those results were outstanding”, comments our CFO, Luciano Siani Pires, in the video below.
According to the executive director, the good cash flow generation results are due to four factors:
* Price increases in iron ore, copper and nickel.
* Price realization of Vale’s high grade 65% iron ore, in Carajás.
* Cost reductions.
* High production volumes.
The operational performance was quite positive. Vale achieved a production record in iron ore, coal and copper in Salobo, Pará. Regarding iron ore, the S11D mine ramp-up was one of the main responsible for the strong result. “We are paving our way in the future for better governance, better decisions and even a better company of our shareholders”, states Siani.
Chief Executive Officer Fabio Schvartsman commented on the first results fully under his management: “3Q17 performance shows improvements in price realization and the initial results of the cost management matrix approach. In addition, strict discipline in capital allocation will have a direct impact on future cash flows”. He concluded that: “This is a new phase for Vale in terms of efficiency, sustainability and corporate governance. Now we are able to go to the Novo Mercado listing segment well in advance of our original plans with the support of all our shareholders. We are ready to transform Vale into a true corporation”.