Vale posts $3.8 billion Q4 loss on nickel assets impairment

SAO PAULO/RIO DE JANEIRO, Feb 12 (Reuters) - Brazilian miner Vale VALE3.SA on Thursday reported that its fourth-quarter net loss widened versus the same period of 2024, citing an impairment of nickel assets in Canada and a tax effect.

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".

The company also reported a $2.8 billion impact from a write-off of deferred tax assets from subsidiaries.

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

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) expanded 21% to $4.6 billion, matching expectations. Vale said that, without non-recurring items and other effects, the figure reached $4.8 billion.