Vale's Q4 loss more than doubles but core results solid, shares +0.6% AH

|About: Vale S.A. (VALE)|By:, SA News Editor

Vale (VALE) says its Q4 net loss more than doubled Y/Y, as a massive tax settlement and impairment charges undercut a relatively strong performance by its core operations.

Vale's net loss of $6.45B was more than double the $2.65B loss posted in the year-ago quarter, as it had agreed in November to pay 22.3B reais ($9.36B) to the Brazilian government to settle a dispute over back taxes it allegedly owed for profits on its overseas operations; the company also booked impairment charges of $2.3B, mainly related to the suspended Rio Colorado potash project in Argentina.

However, Q4 adjusted EBITDA rose 50% Y/Y to $6.64B, and sales rose 8.5% to $13.61B as Vale's average realized price for iron ore rose 13% to $112.97/metric ton and the price received for iron-ore pellets rose 16% to $150.17.

Shares +0.6% AH.