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Teck Resources Q2 2019 unaudited Reports

Coal News - Published on Mon, 29 Jul 2019

Image Source: Mining Global
Teck Resources Limited reported adjusted EBITDA2 of USD 1.2 billion for the Q2. Profit attributable to shareholders was USD 231 million for the Q2 2019 compared with USD 634 million a year ago. Adjusted profit attributable to shareholders1 2 was USD 459 million compared with USD 653 million a year ago. Mr Don Lindsay, President and CEO, said that “We achieved a number of important milestones in the second quarter that have put Teck in a strong position moving forward. The BC Government endorsed saturated rock fills to treat water at our steelmaking coal operations, we updated our capital allocation framework to reflect our focus on returning additional cash to shareholders and we are accelerating our innovation-driven efficiency program RACE21™ and aim to generate annualized EBITDA improvements. These measures are part of Teck’s straightforward strategy of running our operations safely, efficiently and sustainably to generate cash, successfully executing our QB2 Project and returning excess capital to shareholders.”

Significant Items

1. We have updated our capital allocation framework to reflect our intention to make additional returns to shareholders by supplementing our base dividend with at least an additional 30% of available cash flow1 through supplemental dividends and/or share repurchases.

2. We announced that we will apply an additional $600 million to repurchase Class B subordinate voting shares, bringing the previously announced share buy-back under our normal course issuer bid to USD 1.0 billion. To date, we have repurchased approximately 18.8 million in shares for USD 552 million.

3. The BC Government has endorsed saturated rock fills and we have received approval to begin construction to expand the SRF at our Elkview Operations. We estimate that over the long term, SRFs will significantly reduce capital and operating costs compared to active water treatment facilities of similar capacity.

3. We expect to generate an initial $150 million in annualized EBITDA improvements by the end of 2019 through the implementation of our RACE21TM innovation-driven efficiency program. We continue to review additional initiatives and will provide guidance on further potential EBITDA improvements for 2020 in February 2020 along with our normal annual guidance.

4. Profit attributable to shareholders was $231 million ($0.41 per share) in the second quarter compared with $634 million ($1.10 per share) a year ago. Adjusted profit attributable to shareholders was $459 million ($0.81 per share) compared with $653 million ($1.14 per share) in the second quarter of last year.

5. EBITDA was $808 million in the second quarter compared with $1.4 billion in the second quarter of 2018. Our adjusted EBITDA in the second quarter totaled $1.2 billion compared with $1.4 billion last year.

6. Gross profit was $1.1 billion in the second quarter compared with $1.2 billion a year ago. Gross profit before depreciation and amortization1 2 was $1.4 billion compared with $1.6 billion in the second quarter of 2018.

7. Despite government-imposed production curtailments, our energy business unit had strong performance in the second quarter. Our share of Fort Hills EBITDA was $70 million compared with $22 million in the first quarter of this year and $13 million in the second quarter of last year.

Source :

Posted By : Sanju Moirangthem on Mon, 29 Jul 2019
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