Bradespar (BRAP3) Q2 2024 earnings summary

Executive summary

• Net income for 2Q24 reached R$535.5 million, with 1H24 totaling R$878.6 million, marking one of the best first-half results in company history despite a year-over-year decline.

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

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

• Operating revenue in 2Q24 was R$525.2 million, primarily from equity income and interest on capital from Vale.

• Financial results were positive at R$19.6 million in 2Q24, reflecting a recurring net cash position and no financial debt.

Financial highlights

• Total assets increased to R$8.51 billion as of 06/30/2024, up from R$7.89 billion at year-end 2023.

• Equity rose to R$8.45 billion from R$7.83 billion at year-end 2023.

• Earnings per share for 1H24: R$2.10 (common), R$2.31 (preferred), both basic and diluted.

• Cash and cash equivalents grew to R$294.7 million from R$246.2 million at year-end 2023.

• Dividends and interest on equity paid in 1H24 totaled R$450 million.

Outlook and guidance

• The company remains focused on its investment in Vale, which continues to deliver strong operational and financial performance.

• Vale announced R$1.6 billion in interest on equity to be paid in September 2024, benefiting the company.

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

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