Vale earns US$3.8 billion in the 3rd quarter, below market expectations

The company had a profit 33% higher than that registered in the same period last year. (Image: REUTERS/Washington Alves)

A Vale (VALE3) reported net income of US$ 3.88 billion in the 3rd quarter of 2021, below market expectations, which were US$ 5 billion. The information was disclosed in a document sent to the market this Thursday (28).

On the other hand, the company had a profit 33% greater than that registered in the same period last year.

“In this third quarter, our iron ore production was close to 90 million tons, with significant progress in the operational resumption of the Vargem Grande complex,” said the company.

The adjusted Ebitda, which measures the operating result, totaled US$ 6.9 billion, an increase of 13.8%.

Net revenue was US$ 12.6 billion, an advance of 17.84%.

“Our cash generation remains robust, outperforming the last quarter by 18%, a pace that allowed us to pay historic dividends in 2021,” the company said.

Share buyback

The company also announced a new 200 million share buyback program, or 4.1% of the papers in circulation in the market.

The new repurchase comes in light of the imminent conclusion of the current program, which has had around 268 million of the 270 million shares repurchased to date.

The duration of the operation will be 18 months.

“The continuity of the buyback program demonstrates the company’s management confidence in Vale’s potential to consistently create and distribute value. Governed by discipline in capital allocation, we consider the repurchase of our shares to be one of the best investments available to the company”, he informed in the document.

Typically, buy-back programs occur when the company determines that the shares are cheap. In the year, the share of Vale accumulates a fall of 19.42%.

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