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Vale S.A. VALE reported fourth-quarter 2024 adjusted earnings per share of 20 cents, which missed the Zacks Consensus Estimate of 53 cents. The bottom line marked a 64% plunge from earnings of 56 cents per share reported in the year-ago quarter, which reflected lower iron ore sales volumes and prices. Lower sales volume and prices for nickel, somewhat offset by higher copper revenues, also contributed to the decline.
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Including one-time items, Vale reported a loss of 16 cents per share against earnings of 56 cents per share in the year-ago quarter. This was mainly due to the impact of the recognition of an impairment of $1.4 billion related to the Thompson nickel operations and $540 million related to the Voisey’s Bay Mine Extension project.
Vale’s Q4 Revenues Reflect Lower Iron Ore Sales & Volumes
Vale’s net operating revenues were down 22% year over year to around $10.1 billion. The top line beat the Zacks Consensus Estimate of $10 billion.
The Iron Solutions segment generated net operating revenues of $8.15 billion, which marked a 26% decline from last year’s comparable quarter due to a 10% decline in sales volumes and prices.
The Energy Transition Metals segment’s net operating revenues dipped 0.5% year over year to $1.97 billion. Nickel revenues were down 9% year over year to $1.07 billion, attributed to a 2% dip in sales volume and a 12% decline in prices.
Copper revenues gained 13% to $0.96 billion, aided by a 16% jump in prices that offset the impact of a 3% dip in sales volumes.
Vale’s Margins Contract in Q4
In the third quarter, the cost of goods sold was around $6.3 billion, down 9% from the year-ago quarter. The gross profit plunged 37% year over year to $3.86 billion. The gross margin was 33.1% compared with 29.9% in the year-ago quarter.
Selling, general and administrative expenditures were up 41% year over year to $206 million. Research and development expenses were $253 million, 9.5% higher than the year-ago quarter.
Adjusted operating income was $2.99 billion. The figure marked a 47% slump from the year-ago quarter. Adjusted EBITDA was around $3.8 billion, 41% lower than the year-ago quarter.
Pro-forma adjusted EBITDA (including associates and joint ventures and excluding expenses related to Brumadinho) was down 40% year over year to approximately $4.12 billion, mainly reflecting lower iron ore prices and sales volumes. Proforma EBITDA margin was 41% in the fourth quarter compared with 53% in the year-ago quarter.
The Iron Solutions segment’s adjusted EBITDA was $4 billion, which was 39% lower than the fourth quarter of 2023. Energy Transition Metals’ EBITDA was up 2% to $541 million from the year-ago quarter. Copper operations witnessed a 40% year-over-year improvement in adjusted EBITDA to $526 million, attributed to increased sales volumes and prices. Adjusted EBITDA for nickel was $55 million, a 64% drop from the year-ago quarter due to declining average prices and lower volumes sold.