VANCOUVER – Third quarter results have not been kind to Teck Resources. The company took impairment charges totalling $2.2 billion after taxes. That amounts to $1.5 billion on metallurgical coal assets, $300 billion on copper, $19 million on zinc, and $400 million on the Fort Hills oil sands project.
Fortunately, the company has a cash balance of $1.8 billion as of Oct. 21, 2015, that more than covers its $1.5 billion commitment for its share of the oil sands development.
Teck recorded total revenue in the quarter ended Sept. 30, 2015, of $2.1 billion, compared to $2.25 billion in the same quarter of 2014. For the first nine months of 2015 and 2014, revenues were $6.1 billion and $6.3 billion, respectively.
The quarterly loss attributable to shareholders was $2.5 billion (–$3.73 per share) in Q3 2015, compared to a profit of $84 million (+$0.14 per share) a year earlier.
Details of Teck’s quarterly unaudited results are available at Teck.com.