Bradespar (BRAP3) Q2 2024 earnings summary

Executive summary

• Bradespar's investments are primarily concentrated in Vale, with a representative on Vale's Board and committees.

• Market value of Bradespar's assets reached R$10.2 billion at the end of 2Q24.

• Net income for 2Q24 was R$535.5 million, totaling R$878.6 million for 1H24, among the best first-half results in company history.

Financial highlights

• Operating revenue in 2Q24 was R$525.2 million, up 219.3% year-over-year; 1H24 revenue was R$864.9 million.

• Financial result for the quarter was positive at R$19.6 million, reflecting recurring net cash position.

• Personnel, general, and administrative expenses totaled R$5.7 million in 2Q24.

• Shareholders' equity stood at R$8.45 billion as of June 28, 2024.

Outlook and guidance

• Despite a decline in investee results, 1H24 net income remains one of the strongest in Bradespar's history.

• Vale's strong iron ore sales and record production for a second quarter since 2018 support Bradespar's performance.