São Paulo – Operations of Vale in the Middle East fetched US$ 286 million in Q2 of this year, an increase of 1.7% over the same period of last year, according to information released by the company in its balance sheet this Thursday (27th). In Q2 2014, revenues with the region stood at US$ 281 million. In a comparison with Q1 2015, however, revenues remained stable with US$ 286 million.
But from January to March, the Middle East accounted for more in the company’s global businesses, since it answered for 4.5% of revenues. In Q2, from April to June, revenues with the region accounted for 4% of the company’s total revenues. The decline occurred even with the drop in general revenue in the same comparison. But the share of other regions of the world increased, such as North America and Europe.
Vale owns an industrial complex in the city of Sohar, Oman, in the Arabian Peninsula. The plant was opened in March 2012 to expand the company’s presence in the region, with the investment of US$ 2 billion. Before, the company had a local office. The company has in operation in the Arab country a pellet plant, distribution center and maritime terminal.
In Q2’s balance sheet, Vale points out the output of iron ore, which was the best performance for the period in the company’s history. In all, 85.3 million of tons were produced, from which 31.6 million tons came from Carajás, Pará state.
The company’s balance sheet in dollars shows a decline in gross revenues from April to June over the same period of last year, with US$ 10 billion to US$ 7.08 billion. But there was an increase over Q1 2015, when revenues totaled US$ 6.35 billion. Gross profit declined from US$ 3.8 billion to US$ 1.7 billion when comparing the two Q2 of different years, but increased over Q1 when it totaled US$ 1 billion. Vale reports that there was an increase over the start of the year due to higher prices of iron ore fines, besides the trade of higher volumes of fines and pellets.
The company’s net profit increased when comparing the two periods. It totaled US$ 1.6 billion from April to June of this year, against US$ 1.3 billion from Q2 of last year and the loss of US$ 3.1 billion in Q1 of this year.
The ferrous minerals sector accounted for the largest volume of business by the company with 65.3% of operating income, followed by coal, with 23.3%, and fertilizers, with 8.7%. Separated by regions of the world, operations with Asia accounted for the higher percentage, 51.1%, with South America and Europe answering for 18% each, North America with 8.2% and the Middle East with 4%. Separated by country, China accounts for the highest gross revenues with 36.5% of the total, followed by Brazil with 16.4%.
*Translated by Sérgio Kakitani
