Teck Resources warns on fourth-quarter profit

FILE PHOTO: Teck Resources sign is on display during the company's annual general meeting in Vancouver, British Columbia, Canada, April 22, 2010. REUTERS/Lyle Stafford/File Photo

(Reuters) - Diversified miner Teck Resources Ltd said on Thursday it expects fourth-quarter profit to be significantly below market estimates, hurt mainly by “disappointing” business at its energy and Trail operation units.

Teck said results of its energy business and Trail operations, as well as inventory valuations, would reduce quarterly earnings by C$0.30 per share and earnings before interest, tax, depreciation and amortization (EBITDA) by C$195 million ($148.26 million).

Teck’s fourth-quarter earnings per share was expected to be C$1.10, according to Refinitiv IBES data.

The widening of heavy oil differentials had a significant negative impact on Teck’s Energy Business Unit’s results, while Trail Operations faced ongoing supply interruptions from some traditional third-party suppliers in the quarter, Teck said.

Teck will record pretax inventory write-downs totaling C$80 million due to a decline in commodity prices during the fourth quarter, it added.

The Vancouver-based company had reported lower-than-expected third-quarter earnings, hit by declining commodity prices and higher costs.

Reporting by Ismail Shakil and Bhanu Pratap in Bengaluru; Editing by Gopakumar Warrier