- Shares fall despite Q4 EPS and revenue beats.
Teck Resources beats by CAD0.13, beats on revs :
- Reports Q4 (Dec) earnings of CAD1.61 per share, CAD0.13 better than the Capital IQ Consensus of CAD1.48; revenues rose 66.6% year/year to CAD3.56 bln vs the CAD3.38 bln Capital IQ Consensus.
- Production
- Fourth quarter production of 7.3 million tonnes was 14% higher than the same period a year ago and set a second consecutive quarterly production record. Annual production of 27.6 million tonnes also represents an all-time production record. This performance in the quarter and year was the result of record fourth quarter production from four of our six operations and record annual production from Elkview, Greenhills and Line Creek. We also settled five-year collective agreements at Fording River and Elkview during the quarter.
- Sales volumes of 6.9 million tonnes in the fourth quarter was 6% higher than the same period in 2015 and represented the third highest quarterly sales in our history and best ever fourth quarter. Annual sales of 27.0 million tonnes also represents an all-time record high. This strong performance resulted from a combination of tightness in supply and robust demand in all market areas.
Outlook
- Co is expecting sales volumes in the first quarter of 2017 to be ~6.0 million tonnes. As steel mills draw down on inventories built up in the fourth quarter, Co is expecting sales to be weighted towards the back of the quarter, with the result that co expects their first quarter realized price to be ~75% of the benchmark price.
- Co's sales volumes in the first quarter of each year are typically lower than other quarters in the year due to winter weather-related issues and Lunar New Year holidays in China.
- Steelmaking coal production in 2017 is expected to be between 27 and 28 million tonnes.
- Capital spending planned for 2017 also includes $140 million for sustaining capital and $120 million for major enhancement projects, the latter of which largely relates to the initial development costs to enter into the new mining areas mentioned above at Elk Valley operations.
No comments:
Post a Comment