SAO PAULO - Brazilian miner Vale said on Thursday its second-quarter net income fell 18.9% from the previous year, hit mainly by a sharp decline in iron-ore prices and escalating costs, but results still topped analysts' estimates.
Vale, one of the world's largest iron ore miners, posted net income of $6.15-billion, above expectations of $2.837-billion, according to a Refinitiv forecast. Recurring net income, however, fell 49.8% from the year before.
Vale is the latest global miner to be weighed down by higher costs tied to inflation and lower commodity prices. The company flagged that its iron-ore, nickel and copper units had been affected by price increases in fuel and freight expenses, among others.
While Vale's net operating revenue fell 32% from a year earlier, its expenses grew 8% in the same period, dragging down its overall results.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $5.25-billion, down 53.1% year-on-year.
In the three months ended in June 30, Vale realized $113.3/t of iron-ore, down from the $184.8/t in the same period of 2021.
The company also said that expected expenses related to the 2019 Brumadinho dam disaster that killed hundreds of people fell $1-billion to $7.2-billion due to foreign exchange effects.