Brazilian local time April 25, 2018, Vale released the first quarter of 2018 financial results. During the quarter, Vale demonstrated extraordinary flexibility in exceptionally complex situations and achieved excellent results with net debt reduced to its lowest level since the second quarter of 2011.
In the first quarter of 2018, benefiting from a flexible supply chain, Vale’s sales of iron ore and pellets continued to break through the same period in the face of seasonal production declines. Adjusted EBITDA (profit before interest, tax, depreciation and amortization) Totally US$3.971 billion, which is basically the same as the previous quarter.piping spool
In the first quarter of 2018, the cash flow generated through operations, together with the sale of fertilizer assets and the proceeds from financing projects in Mozambique, contributed to the increase in free cash flow from the previous quarter to US$5.015 billion, the highest level since the first quarter of 2011. As a result, net debt decreased by a significant 3.26 billion U.S. dollars from the previous quarter.
Mr. Luciano Siani Pires, Chief Financial Officer of Vale, stressed: “A highlight of the first quarter of 2018 was de-leveraging. Our net debt decreased to US$14.9 billion, the lowest level since the second quarter of 2011. We also paid a shareholder’s return of US$1.4 billion, and we will reach our goal of reducing net debt to US$10 billion in the short term. A good balance sheet and strong cash generation capability will enable us to significantly increase shareholder returns. ” welding overlay
Vale implemented strict return-based capital allocation disciplines. In line with this strategy, capital expenditures for the quarter were US$890 million, the lowest level for the same period since the first quarter of 2015, which was in line with single-season capital expenditures kept within US$1 billion. trend. Vale’s annual capital expenditure guidelines for 2018 is US$3.8 billion.
Vale CEO Mr. Fabio Schvartsman commented: “We are in a very good position to create great shareholder value with a good premium and a flexible product mix. We are very happy that Vale can In the very complex first quarter of 2018, we demonstrated extraordinary flexibility and achieved excellent results. Despite facing the challenge of seasonal production reduction, our EBITDA is still at the same level as the fourth quarter of 2017, which is extremely important to us. "Important." He concluded, "I am working to make Vale a more predictable company. At any price, the market can easily predict Vale's performance. Only when we fully grasp all factors other than price Only when it is possible to do this, this means that we will implement a very strict capital allocation policy, continue to focus on performance, and continue to optimize the cost structure." 90 deg lr elbow