Teck misses profit estimates on lower oil, metal prices
Canada's Teck Resources, the world's second-biggest exporter of steel-making coal, posted a lower-than-expected quarterly profit on Wednesday, hurt by weak prices for heavy crude and base metals.
Transportation bottlenecks in the country have pushed prices of Canadian oil lower, hurting the company's energy business unit, while the US-China trade dispute has roiled the commodities markets.
Due to declines in prices of Western Canadian Select heavy oil and base metals, Teck said it recorded negative pricing adjustments, charges related to write-down in inventory and an operating loss at its Fort Hills oil sands mine in the fourth quarter.
Last month, the Vancouver-based company had warned that its fourth-quarter profit may miss market expectation because of disappointing business at its energy unit and trail operation units, which produces refined zinc and lead.
Revenue rose 2.9% to C$3.25-billion in the quarter.
Teck Resources said its adjusted profit in the quarter ended December 31 fell 26.5% to C$500-million, or 86 Canadian cents per share, from C$680-million, or C$1.16 per share, a year earlier.
Analysts on average were expecting the company to earn 96 Canadian cents per share, according to IBES data from Refinitiv.
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