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Teck Resources Reports Results for 2019

Coal News - Published on Tue, 25 Feb 2020

Image Source: theglobeandmail.com
Teck Resources Limited has reported unaudited adjusted EBITDA of $4.3 billion in 2019 compared with $5.4 billion in 2018. Don Lindsay President and CEO Mr Don Lindsay said “Ongoing global economic uncertainty negatively impacted commodity prices in the fourth quarter and that has continued into 2020, exacerbated by the effect on markets from the Coronavirus and the impact of severe weather conditions in British Columbia, followed by blockades on rail lines. Our focus remains on those aspects of our business within our control including executing on our Quebrada Blanca Phase 2 and Neptune Bulk Terminals expansion projects, taking steps to improve our steelmaking coal logistics chain, controlling costs and implementing our RACE21TM program, which has exceeded initial expectations.”

Highlights

Adjusted profit attributable to shareholders in 2019 was $1.6 billion, compared with $2.4 billion in 2018. Profit attributable to shareholders in 2019 was $339 million compared with $3.1 billion a year ago.

Adjusted EBITDA was $4.3 billion in 2019 compared to $5.4 billion in 2018 and annual EBITDA was $2.5 billion in 2019 compared with $6.2 billion in 2018.

Our RACE21TM innovation-driven business transformation program has implemented initiatives aimed at achieving $160 million in annualized EBITDA improvements as of the end of 2019 based on commodity prices at December 31, 2019, exceeding our initial target of $150 million. At prices in effect when the program was implemented on May 31, 2019, the annualized EBITDA improvements associated with these initiatives would have been $184 million.
Under our cost reduction program, we achieved $210 million of capital and operating cost reductions during the fourth quarter against our target of $170 million.

Construction at QB2 continues with over 7,500 people actively working across the six major construction areas on the project. Although the project continues to target first production in the fourth quarter of 2021 with ramp-up to full production expected during 2022, there have been delays in the schedule primarily due to permitting and social unrest, which will also affect cost. A new baseline schedule is being developed in conjunction with an updated capital estimate planned for the first quarter of 2020.

Source :

Posted By : Rabi Wangkhem on Tue, 25 Feb 2020
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