Vale posts $3.8 billion loss on nickel impairment; analysts welcome core profit 

SAO PAULO/RIO DE JANEIRO, Feb 12 (Reuters) – Miner Vale on Thursday reported that its fourth-quarter net loss widened year-on-year, citing an impairment of nickel assets in Canada, yet analysts welcomed a core profit above expectations, projecting a positive share reaction.

Rio de Janeiro-headquartered Vale, one of the world’s largest iron ore producers, posted a $3.8 billion net loss for the October-to-December quarter, compared to a $694 million loss in the same period of 2024. Analysts polled by LSEG had expected a $2.7 billion profit.

Vale said it logged a $3.5 billion impairment on Vale Base Metals’ nickel assets in Canada, “triggered by a downward revision in long-term nickel price assumptions based on market estimates”.

It also cited a $2.8 billion impact from a write-off of deferred tax assets from subsidiaries, while it increased provisions from Samarco, a joint venture with BHP, by $449 million due to updates of a class action lawsuit in Britain related to the deadly 2015 Fundao tailings dam collapse.

Despite the billion-dollar loss, core earnings – or adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) – expanded 21% to $4.6 billion. Excluding non-recurring items and other effects, Vale’s EDITDA reached $4.8 billion. Analysts had projected it to hit $4.6 billion. 

Analysts at Itau BBA and Santander stressed the $4.8 billion EBITDA above their own, as well as the market’s, expectations – and projected a positive share reaction on Friday.

Vale said its operational results were boosted by higher prices of copper and its by-products, as well as higher volumes sold of iron ore and copper. The miner noted, however, that the effects were partially offset by a stronger Brazilian real.

The company, which last month said its 2025 iron ore production hit the highest annual level since 2018, reported net revenue for the quarter of $11.1 billion, rising 9% and coming nearly in line with the $11 billion expected by analysts.

(Reporting by Andre Romani in Sao Paulo and Marta Nogueira in Rio de Janeiro, Editing by Iñigo Alexander, Natalia Siniawski and Stephen Coates)