- Teck Resources (TECK.A) has reported another quarter of disappointing results as global commodity markets struggle to recover from the pandemic
- Adjusted profit fell more than 66 per cent compared to the third quarter of 2019, from C$389 million to $130 million
- This comes off the back of a similar decline in revenue, which fell more than 24 per cent from $3.03 billion to $2.29 billion
- The company said this was primarily as a result of decreases in steelmaking coal and blended bitumen prices, as well as a decline in sales volumes
- Teck Resources (TECK.A) is currently down 1.49 per cent to $19.90 per share
Teck Resources (TECK.A) has reported another quarter of disappointing results as global commodity markets struggle to recover from the pandemic.
For the third quarter of 2020, adjusted profit fell more than 66 per cent compared to the same period last year, from C$389 million to $130 million.
This comes off the back of a similar decline in total revenue, which fell more than 24 per cent from $3.03 billion to $2.29 billion.
The Vancouver-based mining giant said the decline in performance was largely as a result of a significant decrease in steelmaking coal and blended bitumen prices, as well as a decrease in sales volumes of its principal products. However, this was partially offset by a marginal increase in copper prices.
Don Lindsay, President and CEO of Teck Resources, noted that despite the decline in performance compared to last year, the third quarter results were a substantial improvement over those seen in the second quarter of 2020.
“We made significant progress during the quarter on our priority projects, including safely ramping back up construction at our QB2 project and advancing the Neptune Bulk Terminals upgrade in line with schedule and budget.
“Our financial performance recovered strongly from a second quarter that was significantly negatively impacted by COVID-19, and despite the decline in realised steelmaking coal prices, we posted gains in profitability and operating cash flows,” he said.
Teck said it is aiming to achieve 40 per cent completion of the QB2 Project by the end of the year, with first production anticipated in the second half of 2022. However, the company also cautioned that this is dependent on its ability to successfully navigate the COVID-19 pandemic going forward.
Teck Resources (TECK.A) is currently down 1.49 per cent to $19.90 per share at 10:49am EDT.