Vale S.A.’s third-quarter net income fell to $1.26 billion from $2.69 billion a year earlier. Lower realized iron ore prices and higher costs weighed on results.
Realized iron ore prices declined 10% to $85.1 per tonne. Total costs rose 23%, driven by higher fuel and freight expenses.
Pro forma adjusted EBITDA fell 20% year over year to $3.51 billion, in line with analyst expectations. Net operating revenue increased 2% to $10.6 billion, beating consensus estimates.
Iron ore production was 88.4 million tonnes, down 6% from a year earlier. Vale said it remains confident of meeting the lower end of its full-year production guidance.
The market reaction was mixed, though Vale shares rose after the report. Revenue beat estimates, while adjusted EBITDA was in line with expectations.