Teck Resources Surprises with Q4 Profit

Teck Resources Ltd. (TSX:TCK.B,NYSE:TCK) announced its unaudited results for Q4 2015, commenting that its adjusted profit attributable to shareholders came in at $16 million, or $0.03 per share. That’s down from $116 million, or $0.20 per share, in the year-ago quarter.
According to the Financial Post, “[t]he very fact that Teck was in the black surprised many sell-side analysts — on average, they expected a loss of one cent.”
Further Q4 highlights from Teck are as follows:

• Annual adjusted profit attributable to shareholders was $188 million, or $0.33 per share. Fourth quarter adjusted profit attributable to shareholders was $16 million, or $0.03 per share.
• Gross profit before depreciation and amortization in 2015 was $2.6 billion compared with $2.9 billion in 2014. Gross profit before depreciation and amortization was $614 million in the fourth quarter compared with $757 million in the fourth quarter of 2014.
• Cash flow from operations, before working capital changes, was $1.7 billion in 2015 compared with $2.0 billion last year. Cash flow from operations, before working capital changes, was $428 million in the fourth quarter of 2015 compared with $491 million a year ago.
• The loss attributable to shareholders was $459 million in the fourth quarter compared with a profit of $129 million in the fourth quarter of 2014.
• Our quarterly loss included impairment charges of $736 million on a pre-tax basis, including $45 million on our steelmaking coal assets, $93 million on copper and $598 million on the Fort Hills oil sand project resulting in a $536 million after-tax charge. For 2015, total pre-tax asset impairment charges were $3.6 billion and $2.7 billion on an after-tax basis.
• Adjusted EBITDA for 2015 (not including the non-cash impairment charges) was $2.0 billion compared with $2.4 billion in 2014.
• Our liquidity remains strong with a cash balance of $1.8 billion at February 10, and US$3.0 billion available under our revolving credit facility which matures in 2020.

Click here to read the full Teck Resources Ltd. (TSX:TCK.B,NYSE:TCK) press release.