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MarketScreener Homepage  >  Equities  >  Bolsa de Valores de Sao Paulo  >  Vale S.A.    VALE3   BRVALEACNOR0

VALE S.A.

(VALE3)
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Brazil's Vale resumes dividends 18 months after deadly dam disaster; Q2 profit soars

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07/29/2020 | 11:20pm EDT
FILE PHOTO: The debris of the municipal school of Bento Rodrigues district, which was covered with mud after a dam owned by Vale SA and BHP Billiton Ltd burst, is pictured in Mariana

Brazilian mining giant Vale SA said on Wednesday it will resume dividend payments to shareholders, suspended since a deadly dam burst in January 2019, as it reported second-quarter profit rocketed amid a surge in iron ore prices.

Disclosing the resumption in a securities filing, Vale said the decision came following the reduction of business uncertainties related to the novel coronavirus pandemic. "The worst is likely behind us," Vale said in a statement.

The dividend news, released after the close of share trading in Sao Paulo, was awaited by investors and analysts and may stoke market interest in the shares. But it may also bring fresh scrutiny from critics and victims' groups who blame the firm for the Brumadinho dam failure, which killed 270 people.

Vale shares closed 4.3% higher, at a historical high of 62.95 reais.

Announced in a separate filing, Vale's second-quarter net profit came in at $995 million, more than four times higher than $239 million the previous quarter, aided by higher iron ore prices and a devaluation of the Brazilian real currency. Vale posted losses of $133 million in second-quarter 2019 as it shut down mines due to security concerns following the dam collapse.

The result fell short of a Refinitiv estimate of $1.51 billion. The company said it was recognizing a liability of $500 million, related to the sale of its mine on the Pacific island of New Caledonia.

Iron ore prices rose during the pandemic, unlike other commodities such as oil, amid a global supply shortage.

Demand for the key steelmaking ingredient has remained resilient as China ramps up infrastructure spending to combat the economic shock from the COVID-19 crisis.

Vale's board also approved on Wednesday an interest on equity payment of 1.41 reais ($0.27) per share, to be paid on Aug. 7.

($1 = 5.17 reais)

By Gram Slattery and Sabrina Valle


Stocks mentioned in the article
ChangeLast1st jan.
EURO / BRAZILIAN REAL (EUR/BRL) 0.20% 6.6528 Delayed Quote.47.81%
GOLD 0.34% 1907.881 Delayed Quote.25.13%
LONDON BRENT OIL 0.99% 40.86 Delayed Quote.-37.71%
SILVER 0.90% 24.5078 Delayed Quote.37.21%
US DOLLAR / BRAZILIAN REAL (USD/BRL) 0.00% 5.6216 Delayed Quote.39.86%
VALE S.A. -1.50% 62.5 End-of-day quote.17.26%
WTI 0.84% 38.905 Delayed Quote.-36.11%
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Financials (USD)
Sales 2020 36 992 M - -
Net income 2020 8 706 M - -
Net Debt 2020 3 590 M - -
P/E ratio 2020 6,77x
Yield 2020 3,05%
Capitalization 57 033 M 57 009 M -
EV / Sales 2020 1,64x
EV / Sales 2021 1,52x
Nbr of Employees 79 646
Free-Float 76,8%
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Technical analysis trends VALE S.A.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 7
Average target price 15,00 $
Last Close Price 11,12 $
Spread / Highest target 65,9%
Spread / Average Target 34,9%
Spread / Lowest Target -1,94%
EPS Revisions
Managers
NameTitle
Eduardo Bartolomeo Chief Executive Officer
Josť MaurŪcio Pereira Coelho Chairman
Luciano Siani Pires Executive Director-Finance & Investor Relations
Oscar Augusto de Camargo Filho Director
Marcel Juviniano Barros Director
Sector and Competitors
1st jan.Capitalization (M$)
VALE S.A.17.26%57 009
FORTESCUE METALS GROUP LIMITED55.38%36 597
KUMBA IRON ORE LIMITED22.34%10 188
NMDC LIMITED-35.40%3 519
FERREXPO PLC13.05%1 411
LABRADOR IRON ORE ROYALTY CORPORATION5.32%1 262