Brazilian iron ore giant Vale SA (VALE.US) announced it will distribute a special dividend to shareholders, benefiting from strong operational performance and elevated iron ore prices this year. According to a Thursday statement, the company's board approved a special dividend of 3.58 Brazilian reais per share, to be paid in installments in January and March next year. The total payout of 15.3 billion reais (approximately $2.9 billion) will roughly match the company's third-quarter net profit.
Vale's CFO, Marcelo Bacci, hinted to investors in late October that the company was likely to declare a special dividend given iron ore prices remained above $100 per ton. During the quarterly earnings call, he noted that operational performance was generating robust cash flow, exceeding initial expectations for the year.
Financial results showed Vale's Q3 revenue rose 9% year-over-year to $10.42 billion, surpassing analysts' consensus estimate of $10.33 billion. Net income attributable to shareholders surged 78% to $2.744 billion, also beating the $2.1 billion forecast. Pro forma EBITDA reached $4.399 billion, up 17%, while adjusted EBITDA climbed 21% to $4.369 billion, driven by higher sales volumes and improved cost efficiency.
By segment, the iron ore division reported revenue of $8.423 billion and adjusted EBITDA of $3.972 billion, while the energy transition metals unit posted revenue of $1.997 billion and adjusted EBITDA of $687 million.
CEO Gustavo Pimenta stated, "Iron ore production reached its highest quarterly level since 2018, while copper achieved its best Q3 performance since 2019. Additionally, we continue to enhance cost competitiveness in nickel."
Vale expects consolidated copper costs in 2025 to range between $1,000 and $1,500 per ton, down from the previous forecast of $1,500–$2,000. Nickel costs are projected at $13,000–$14,000 per ton, lower than the prior estimate of $14,000–$15,500.
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