São Paulo – The Brazilian mining company Vale’s sales to the Middle East fetched US$ 1.494 billion in 2013, up 28% from 2012. The shipped volume was up 11% to 7.527 million tonnes of iron ore pellets. The company owns a pelletizing plant and a distribution centre at the industrial complex in the Port of Sohar, Oman, since 2011.
“Our Oman operation was built to service the local market. Last year, the output was close to 9 million pellets, but we always ship some product from Brazil to the Middle East,” said José Carlos Martins, the executive director for Ferrous Metals and Strategy, during a conference call with the press this Thursday (27th). “Demand has been increasing in the Middle East. Every year we see it go up at least 5%,” the executive said.
Last Wednesday (26th), the company released its annual and quarter-four results. In 2013, the company posted a net income of US$ 584 million, much lower than 2012’s US$ 5.454 billion. In Q4 2013, the mining company incurred net losses of US$ 6.451 billion.
The poor Q4 performance was a result of the company’s adhesion to the federal government’s Refis debt rollover program. The Vale board, however, has expressed optimism.
“The poor assessment stems from the media’s view, which is predominantly based on accounting,” said CEO Murilo Ferreira. According to Martins, the Refis should not keep impacting the company’s results this year. “The impact on our accounts has been fully absorbed in this quarter,” he said.
In 2013, Vale posted US$ 48.994 billion in gross revenues, nearly the same result as 2012’s US$ 48.753 billion. Gross revenues in Q4 stood at US$ 13.606 billion, up 5% from Q3.
“We are highly motivated by our 2013 performance; we have had very solid results,” said Ferreira. “We are succeeding in focusing on our main businesses, and we are working towards a strict cost reduction plan. The company is preparing for a solid increase in shipped volumes over the next few years,” he said.
*Translated by Gabriel Pomerancblum