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Vale and China Merchants Energy Shipping Co signed an agreement

Vale's company, a leader in the mining industry in Brazil, and a subsidiary of ChinaMerchantsGroup, ChinaMerchantsEnergyShippingCo, have entered into a long-term agreement. The Framework Agreement addresses issues of strategic cooperation in the field of logistics and marine transportation. According to data provided by the Brazilian company the original agreement was signed by the parties on September 26 last year. The new agreement stipulates the sale by Vale 4 built «Valemaksa» company China Merchants Energy Shipping Co. Details of the agreement and the conditions under discussion. According to the expectations of the parties agreement will be closed in the near future.

Today Valev part of last year's agreement with China Ocean Shipping Company has made a sale of 4 mega-ore carriers. The transaction amount was 445 million. USD. At the expense of Valesredstva arrive in June this year. In February 2015, the Brazilian company has received permission from the PRC on the entry «Valemax» in Chinese ports. Earlier this activity remained prohibited.

Company Valev 2011 discovered the raw material transportation mega-ore carriers. This step was taken in order to reduce transportation costs in Southeast Asia. In addition, it increases the competitiveness of the company in comparison with Australian entrepreneurs.

Despite all the measures taken in January-March 2015, the company saw a net loss reached 3.118 billion. USD. At the same time in 2014. The first quarter showed a net profit of $ 2.515 billion. USD. According to data provided by Vale's, on the results of October-December 2014 net loss increased by 68.6%. Negative grounded losses due to the devaluation of the national currency at a rate of more than 3 billion. USD. Basic loss for the quarter, excluding one-off items amounted to 678 million. USD. In the last year there was a basic income of 2.045 billion. USD.

According to the company, the result is not a surprise, given the seasonality of shipments. In winter, their volumes are reduced, and this justified the loss of 1.307 billion. USD. Affected by the sharp decline in the cost of production — the shortfall amounted to 1.561 billion USD… Accordingly, in January-March, the company's gross operating income fell by 34.3% y / y; by 31.1% q / q and amounted to 6.358 billion. USD.

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