Brazilian iron-ore miner Vale SA reported a decline in profit for the third quarter, as the foreign exchange gains that were reported in the same period last year did not materialize again.
In the period, Vale’s net income from continuing operations reached $2.8 billion, down from $4.5 billion in the previous year. However, the company’s net operating revenue increased to $10.6 billion from $9.9 billion in Q3 of 2022. Adjusted earnings before interest, taxes, depreciation, and amortization from continuing operations also saw growth, reaching $4.2 billion compared to $3.7 billion a year earlier.
Iron Ore Prices
The average realized price per metric ton of iron ore fines rose to $114.0 in the third quarter of 2023 from $103.3 per ton in the same period last year. However, the price for iron ore pellets, which are a premium product, fell to $161.2 per ton from $194.3 per ton.
Foreign Exchange Impact
Vale reported a loss of $102 million from foreign exchange and monetary variation in Q3 of this year, compared to a gain of $1.8 billion in the same period of last year.