Vale (NYSE:VALE) +0.6% post-market after reporting Q4 net profit surged to $5.4B, beating analysts forecasts of $4.7B, helped by accounting gains from the reclassification of cumulative foreign exchange gains, as reported by Reuters.
The gains were partially offset by higher expenses related to the 2019 Brumadinho dam disaster, including an additional $1.7B provision related to the decharacterization of upstream dams
Q4 adjusted EBITDA fell 23% Y/Y to $6.96B and below $7.1B reported in Q3, reflecting a lower realization price for iron ore.
Vale also announced the distribution of dividends to shareholders of 3.7018 reais/share, equivalent to ~$3.5B.
Vale reported recently that Q4 iron ore production fell 2.4% Y/Y while iron ore sales edged 0.4% higher.
Separately, creditors from the Vale-BHP Samarco iron ore joint venture rejected the new restructuring plan proposed by the company, Bloomberg reports.
Vale’s price return has dropped 3.5% over the past year but has increased 23% YTD.