VANVOUVER, B.C. — Teck Resources Ltd. says it expects its fourth-quarter profit to be significantly below what investors were expecting due to the low price of Canadian oil at the end of last year, issues at its operations in Trail, B.C., and a decline in commodity prices.
The mining company says the factors have combined to reduce its earnings by 30 cents per share.
Analysts on average had expected a fourth-quarter profit of $1.10 per share, according to Thomson Reuters Eikon.
Teck says it expects a loss of 15 cents per share in its energy business unit due to the low price for Western Canadian Select oil, which fell from US$29.80 per barrel at the beginning of October to a low of US$6.42 in late November before ending the year at US$24.66.
The price for Western Canadian Select has climbed since the announcement of mandatory production curtailments by the Alberta government and is now more than US$40 per barrel.
A loss of five cents per share is also expected at Teck’s Trail operations where it dealt with a number of issues, while it will take a charge of 10 cents per share as a result of the decline in commodity prices in the fourth quarter.
Teck is expected to report its full financial results on Feb. 13.
Companies in this story: (TSX:TECK.B)
The Canadian Press