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Vale sees profit decline in Q2 due to Samarco disaster

Thursday, 28 July 2016 00:08:36 (GMT+3)   |   Sao Paulo
       
Brazilian miner and iron ore producer Vale saw its net profit decline in Q2 both on a year-on-year and on a quarter-on-quarter basis, the company said on Thursday.

Vale’s net profit in Q2 was $1.10 billion, down from an $1.77 billion in Q1 2016 and from $1.67 billion in Q2 2015.

Vale attributed the diminished net profit in Q2 as compared to Q1 to a $ 1.03 billion Samarco-related provision.

Net operating revenues in Q2 fell 5 percent, year-on-year, but rose 16 percent, quarter-on-quarter, to $6.62 billion.

Adjusted EBITDA in Q2 was $2.38 billion, 8 percent up, year-on-year, and 19 percent higher when compared to Q1. Adjusted EBITDA margin in Q2 rose to 36 percent from 31.8 percent in Q2 2015 and from 35.1 percent in Q1 this year.

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