Vale has a profit of R$ 30 billion in the second quarter

Vale recorded net income of R$ 30.033 billion in the second quarter of 2022, according to a balance sheet released this Thursday (28) by the company.

The result is 25.1% lower than in the same period in 2021 (R$ 40.095 billion), the year in which the mining company had the highest profit in the history of Brazilian public companies, at R$ 121 billion.

The smaller amount in the second quarter of 2022 was expected by analysts due to the recent drop in prices of iron ore, Vale’s main product, currently close to US$ 100 per ton.

The drop in commodities has been interpreted by analysts as a sign of a slowdown in the global economy.

In relation to the first quarter (R$ 23.046 billion), the company’s profit increased by 30.3%. The result of the first three months of this year had been negatively impacted by the drop in production due to heavy rains in Minas Gerais and delays in environmental licensing.

The R$30.033 billion refer to the net income attributed to Vale’s shareholders, an indicator that serves as the basis for the payment of dividends. Vale informed that it approved the distribution of dividends in the gross amount of R$ 3.57 per share.

“With the substantial re-shaping [remodelação] of our businesses, such as the sale of the Midwest System, the company is much more prepared to deliver its production resumption agenda,” said Vale’s president, Eduardo Bartolomeo, in a statement released this Thursday.

“We remain committed to a disciplined allocation of capital and the generation and return of value to our shareholders, as evidenced by the announcement to pay $3 billion in dividends.”

A report released by Vale last week indicated that iron ore production reached 74.1 million tonnes in the second quarter of this year, down 1.2% from the same period last year.

On the other hand, compared to the first quarter of 2022, impacted by heavy rains in Minas Gerais, the indicator increased by 17.4%.