Vale(US:VALE)2025-10-30 21:44Financial Performance - Consolidated net operating revenue for the three-month period ended September 30, 2025, was R$56,701 million, an increase of 6.5% compared to R$52,978 million in the same period of 2024[13] - Gross profit for the nine-month period ended September 30, 2025, was R$51,610 million, a decrease of 0.8% from R$52,049 million in the same period of 2024[13] - Net income attributable to Vale S.A.'s shareholders for the three-month period ended September 30, 2025, was R$14,617 million, up from R$13,386 million in the same period of 2024, representing an increase of 9.2%[13] - Basic earnings per common share for the nine-month period ended September 30, 2025, was R$8.17, a decrease of 3.7% compared to R$8.48 in the same period of 2024[15] - Operating income for the three-month period ended September 30, 2025, was R$15,207 million, down from R$20,388 million in the same period of 2024, reflecting a decrease of 25.8%[13] - Comprehensive income attributable to Vale S.A.'s shareholders for the nine-month period ended September 30, 2025, was R$28,542 million, down from R$35,714 million in the same period of 2024, a decrease of 20.0%[17] - Cash flow from operations for the nine-month period ended September 30, 2025, was R$50,599 million, an increase of 2.2% compared to R$49,529 million in 2024[20] Costs and Expenses - Financial expenses for the nine-month period ended September 30, 2025, totaled R$6,674 million, an increase of 18.1% compared to R$5,651 million in the same period of 2024[13] - The total cost of goods sold and services rendered for the nine-month period ended September 30, 2025, was R$102,309 million, an increase of 8.2% from R$94,555 million in the same period of 2024[13] - The cost of goods sold and services rendered for the three-month period ended September 30, 2025, was R$36,077 million, up from R$34,827 million in 2024, reflecting an increase of approximately 3.6%[52] - Direct compensation for personnel increased to R$8,683 million in 2025 from R$7,224 million in 2024, a rise of 20.2%[26] - The company’s personnel costs for the three-month period ended September 30, 2025, were R$4,039 million, compared to R$3,920 million in 2024, indicating a rise of about 3%[54] - The company’s selling and administrative expenses for the three-month period ended September 30, 2025, were R$858 million, an increase from R$770 million in 2024, representing a growth of about 11.4%[55] Assets and Liabilities - Total assets as of September 30, 2025, amounted to R$484,953 million, a decrease from R$496,325 million at the end of 2024[22] - Total liabilities decreased to R$260,220 million from R$282,605 million at the end of 2024[22] - Cash and cash equivalents at the end of the period increased to R$31,391 million from R$25,039 million in 2024[22] - The company reported a total of R$10,092 million in assets from the Middle East, Africa, and Oceania as of September 30, 2024, which was a significant portion of the total assets[51] - Accounts receivable, net, as of September 30, 2025, was R$13,328 million, down from R$14,600 million as of December 31, 2024[81] - Consolidated financial liabilities for suppliers and contractors increased to R$30,054 million as of September 30, 2025, up from R$26,217 million on December 31, 2024, representing a growth of 6.8%[84] Investments and Capital Expenditures - The company’s investments in property, plant, and equipment were R$240,912 million, down from R$247,594 million at the end of 2024[22] - The company reported additions of R$20,332 million in property, plant, and equipment during the nine months ended September 30, 2025[115] - The total investment in associates and joint ventures was R$27,434 million as of September 30, 2025, down from R$28,158 million, indicating a decrease of 2.6%[95] Tax and Legal Matters - The effective income tax rate for the nine-month period ended September 30, 2025, was impacted by tax incentives amounting to R$4,731 million, compared to R$3,692 million in 2024[64] - As of September 30, 2025, the company reported uncertain tax positions totaling R$40,538 million, an increase from R$36,773 million at the end of 2024[68] - The company recognized provisions totaling R$10,423 million for obligations related to the Brumadinho dam failure as of September 30, 2025[154] - The likelihood of loss from ongoing legal proceedings is considered possible, but the potential loss amount cannot be reliably estimated at this time[181] Foreign Exchange and Financial Instruments - The company recognized a gain of R$8,906 million from foreign exchange and interest rate risk in the nine-month period ended September 30, 2025[121] - The fair value of foreign exchange and interest rate derivatives was R$3,325 million as of September 30, 2025, with a notional amount of US$9,394 million[123] - The company has financial guarantees issued by financial institutions amounting to R$5,927 million (US$1,114 million) as of September 30, 2025, a slight decrease from R$6,756 million (US$1,091 million) as of December 31, 2024[198] Operational Performance - The company recorded losses of R$59 million (US$10 million) and R$176 million (US$31 million) for operational stoppage and idle capacity in the Iron Solutions segment for the three and nine-month periods ended September 30, 2025, compared to R$184 million (US$36 million) and R$562 million (US$108 million) in the same periods of 2024, indicating a reduction in losses[196] - The company has suspended some operations due to safety concerns regarding geotechnical structures, impacting operational capacity and leading to financial losses[196]