Brazilian pellets producer Samarco went from a BRL 2.8 billion ($810.3 million) net profit in 2014 to a BRL 5.8 billion ($1.67 billion) net loss in 2015, following the Mariana disaster, which had a major impact on the company’s full year results in 2015.
Samarco’s net revenues in 2015 totaled BRL 6.4 billion, 14 percent down, year-on-year, from BRL 7.5 billion.
The company’s gross profit in 2015 fell 34.1 percent, year-on-year, to BRL 2.8 billion due to rising cost of products and services sold and to diminishing revenues.
What impacted Samarco the most was the company’s operational and net expenses, which totaled BRL 10.8 billion in 2015, out of which BRL 9.8 billion were related to repairs due to the Mariana disaster.
While auditing Samarco’s FY2015 numbers, PwC said there’s a substantial doubt regarding the company’s ability to continue operating. The company plans a Q4 restart.