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Vale posts $8.5 billion net loss in Q4; names new board chairman

Thursday, 25 February 2016 22:25:00 (GMT+3)   |   Sao Paulo
       
Brazilian iron ore producer Vale posted an $8.5 billion net loss in Q4 2015, the company said this week, while releasing its quarterly and full-year results. In Q4 2014, the company reported a net loss of $1.8 billion.

Vale’s adjusted EBITDA in Q4 was $1.3 billion, down from $2.1 billion in the same period of the year prior. Adjusted EBITDA margin slightly declined to 23.6 percent in Q4, from 24.1 percent a year ago.

The company’s gross operating revenues declined 35.1 percent in Q4, year-on-year, to $5.9 billion. Net operating revenues in Q4 diminished nearly 35 percent, year-on-year, to $5.8 billion.

Vale reverted a net profit of $657 million in 2014 and posted a $12.1 billion net loss in 2015. The company attributed the loss to a lower a EBITDA, higher impairments on assets, onerous contracts and investments as well as higher losses on foreign exchange and monetary variation.

Additionally, Vale said it replaced Dan Antonio Marinho Conrado as the company’s chairman of the board; Gueitiro Matsuo Genso assumed the position as of February 24, 2016.

Vale defined the change as a “natural transition” that reinforces both Vale’s strategic direction and its short and medium term initiatives.

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