Favored by record iron ore prices during the year, Vale ended 2021 with a record profit of BRL 121.2 billion, more than four times the BRL 26.7 billion recorded in 2020. It is the highest profit of a publicly traded company in the country, surpassing the R$ 106.6 billion announced by Petrobras this Wednesday (23), which held the record until then, according to Economatica.
According to the mining company, the 2021 performance was boosted by the 46.5% increase in the reference price of ore with 62% iron content and by higher sales during the year, which had record prices in the international market.
With the result, Vale proposes the payment of US$ 3.5 billion (R$ 18 billion, at the current price) in dividends to its shareholders. The company had already distributed US$ 7.4 billion (R$ 37 billion) in 2021 as compensation for the performance of the first half.
In the balance sheet, as has been the custom since the dam collapse that left 277 dead in 2019, Vale lists the repair efforts, saying that it spent R$23 billion in these three years, including agreements for individual compensation of 12,800 people. .
The company also said that it had already completed the de-characterization of 7 of its 30 dams built with the same method used in the one that failed in Brumadinho, a legal requirement after the tragedy. This year, another five should have the works completed and the company is negotiating more time to complete the rest.
“We are on the way to being one of the safest and most reliable companies in the sector and a reference in the creation and sharing of value for the whole of society”, wrote the president of Vale, Eduardo Bartolomeo in the document released this Thursday (24).
In the fourth quarter, the mining company had a profit of R$ 29.9 billion, an increase of 243% in relation to the same period of the previous year.
In 2021, the company sold iron ore at an average price of US$ 104.5 per ton (R$ 534), 30.8% higher than in 2020. In the second quarter, driven by high Chinese demand, the price surpassed the first time in history the barrier of US$ 200 (R$ 1,020).
In the year, Vale produced 315.6 million tons of ore, an increase of 5.1% compared to 2020, a reflection of the resumption of paralyzed operations after the Brumadinho disaster and the greater appetite of the market.
With higher sales and better prices, the mining company ended 2021 with revenue of R$ 293.5 billion, up 42.4% compared to 2020. Ebitda, an indicator that measures cash flow, rose 82.3% to BRL 168.1 billion.
The Ebitda of the ferrous minerals segment, the company’s main operation, closed the year at R$169.8 billion, R$59.7 billion higher than that recorded in 2020.
Vale reduced its debt by 8.2% in 2021, reaching the end of the year with a gross debt of US$ 12.2 billion (R$ 62 billion). With debt under control and good cash generation, the mining company has carried out share buyback and cancellation programs.
These operations are aimed at valuing the papers in circulation in the market. This Thursday, the company approved a new cancellation of 133 million shares that are in its treasury.
After a period of deceleration, the international price of ore rose again this week, following the movement verified in the main international commodities after the beginning of the Russian attacks on Ukraine.
In the balance sheet released this Thursday (24), Vale makes no reference to the attack. In his assessment of the future scenario, he says that the prospects for iron ore remain positive in view of the recovery of the global economy with vaccination.
“We expect global steel production to grow slightly in 2022 as the global economy is strengthened by reducing supply chain bottlenecks, meeting pent-up demand in recent years and boosting consumer and business confidence,” he said.
On the other hand, global inflation and slower growth in China could pose a risk to the recovery. “In the long term, the transition to a greener economy will require the consumption of higher quality iron ore products in order to ensure the reduction of emissions.”
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