Vale said its adjusted EBITDA of US$3.9 billion for the June quarter was in line with the previous quarter as anticipated.
It reported a net income of $76 million, up from the $16 million in the previous corresponding period but down from $1.6 billion in the March quarter, due to non-cash impacts including the depreciation of the Brazilian real on US debt plus obligations to Samarco and the Renova Foundation.
"We had a strong performance in 2Q18, proactively dealing with the difficulties imposed by the nationwide truck drivers' strike in Brazil, achieving records in iron ore production (96.8 Mt) and sales (86.5 Mt1) for a second quarter," the company said.
It reduced its net debt to $11.5 billion, shy of the company's $10 billion target.
Capex for the June quarter of $705 million was the lowest level for the period in the last 13 years, Vale said, and revised its capex guidance for 2018 down to $3.6 billion.
It has struck new, long-term shipping contracts that are expected to save about $5 per tonne on freight costs.
Ferrous minerals and coal executive officer Peter Poppinga said Vale was building its differentiation strategy and pursuing the "value over volume" margin optimisation approach.
The company announced a share buyback of $1 billion within a year and pointed out its new "aggressive and sustainable" dividend policy had come into effect.
"Pursuant to this, we are announcing US$2.054 billion of shareholder remuneration to be paid in September 2018, the highest remuneration for a semester since 2014," Vale said.
