https://www.engineeringnews.co.za

Vale CEO eyes first quarter results in line with fourth quarter

28th February 2018

By: Reuters

  

Font size: - +

RIO DE JANEIRO – Brazilian miner Vale should achieve results in the first quarter that are similar to those in the final three months of 2017, the chief executive officer of the world's top iron-ore producer said on Wednesday.

In a conference call after the company reported a nearly 50% jump in profit in the fourth quarter, Fabio Schvartsman said the similar financial performance would come despite what is usually a weaker January to March period.

"In terms of Vale's overall performance for the first quarter of 2018, despite the fact that admittedly the first quarter is seasonally weaker, we still expect to deliver results substantially in line with fourth-quarter results last year," he said.

Executives also forecast iron-ore prices to be sustained by economic growth and growing steel output, and said Vale is happy when prices per tonne are in the $60 to $70 range. Iron-ore for prompt delivery at the Qingdao port in China was quoted on Wednesday at $78.61/t.

Vale's actions will weigh heavily on those prices, as it will account for half the 40-million tonnes of new iron-ore in the seaborne market that it expects will come online this year, executives said.

The miner also reiterated its promise to shift its dividend policy in the second half of the year, as it marks its deleveraging efforts.

The company reported a 14% cut in net debt to $18.14-billion in the fourth quarter and plans to slash it to $10-billion by mid-2018.

Vale's board approved a $781.25-million dividend before results were released on Tuesday.

Vale executives also said on Wednesday that, as the world's top nickel producer, it plans to reduce costs in all its nickel operations by 10% this year, which they said implied savings well above $150-million.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

The Steel Tube Export Association of South Africa
Steel Tube Export Association of South Africa

The Steel Tube Export Association of South Africa was established to develop sustainable, internationally competitive carbon steel tube and pipe...

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.053 1.055s - 140pq - 2rq
Subscribe Now