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Brazil miner Vale nearly doubles net profit as output recovers

Credit: REUTERS/WASHINGTON ALVES

Brazilian miner Vale SA on Wednesday reported that its third quarter net profit nearly doubled, as the company boosted iron ore production and inventories following a deadly dam disaster in January 2019.

Adds details on production, sales

Oct 28 (Reuters) - Brazilian miner Vale SA VALE3.SA on Wednesday reported that its third quarter net profit nearly doubled, as the company boosted iron ore production and inventories following a deadly dam disaster in January 2019.

The $2.9 billion net profit in the three months through September compared with $1.6 billion in the year-ago period, although it fell short of a Refinitiv estimate of $3.6 billion.

Results were driven by a 26% increase in realized prices for iron ore and 20% higher iron ore sales volumes in the quarter, Vale said.

The world's second largest producer of the key steelmaking ingredient earlier this month reported a 31% recovery in iron ore output compared to the second quarter. It reached its best result in two years - 88.7 million metric tons - as a number of mines that were halted after the Brumadinho dam collapse ramped up production or came online.

Vale posted adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 6.1 billion, up from $4.6 billion in the year-ago period.

(Reporting by Sabrina Valle; Editing by Christian Plumb)

((Sabrina.Valle@thomsonreuters.com;))

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