Teck Resources (TECK) Q3 Steelmaking Coal Sales Down
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Update time : 2022-10-11 17:11:40
Teck Resources’ third-quarter steelmaking coal sales were 5.6 million tons in the September quarter, lower than the volume of 5.9 million reported in the year-ago quarter. The figure, however, came near the lower end of the recently updated guidance of 5.5-5.9 million tons. The third quarter’s performance also marked an 11% sequential drop.
Management on Sep 20, 2022, had lowered steelmaking coal sales guidance for the quarter to the abovementioned range from the prior guided range of 5.8-6.2 million tons. This was due to the impact of operational halts at Teck Resources’ Elkview steelmaking coal plant following a structural failure of the feed conveyor belt. The recent labor action at Westshore Terminals was also a reason for the downgrade.
Teck Resources reported an average realized steelmaking coal price of $304 per ton in third-quarter 2022. The figure marked an increase from $237 per ton in the third quarter of 2021. TECK had witnessed record high realized steelmaking coal prices of $453 per ton in the second quarter of 2022.
FOB Australia prices continued to increase in the second quarter and reached a record mark, declining thereafter from the peak level. TECK expects to record provisional pricing adjustments of a negative $191 million in the quarter due to the dip in steelmaking coal prices during the quarter.
Lower steelmaking volumes and lower metal prices (copper, zinc, gold and silver) are expected to get reflected in Teck Resources’ third-quarter results, scheduled to be reported on Oct 27.
The Zacks Consensus Estimate for the third quarter of 2022 is currently pegged at $3.37 billion, suggesting growth of 6.7% from the prior-year quarter’s reading. The same for earnings stands at $1.38, indicating a decline of 7.4% from $1.49 reported in the year-ago quarter.
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