On April 20, Vancouver, Canada-based miner and metallurgical coal producer Teck Resources Limited issued its financial results for the first quarter of 2010, stating that the company posted record earnings during the period.
According to the financial results, the net profit of the company was CA$908 million (US$914 million) in the first quarter of 2010, compared with a net profit of CA$241 million in the first quarter of 2009, increasing 277 percent. Sales revenues in the first quarter of 2010 saw an increase of 14 percent, rising from CA$1.67 billion in the previous year to CA$1.9 billion (US$1.91 billion). The EBITDA of the company was CA$1.51 billion (US$1.52 billion) in the first quarter of 2010, compared with an EBITDA of CA$1.04 billion in the first quarter of 2009, increasing 50 percent.
Teck said that it will have finished paying off the $9.8 billion loan borrowed 18 months ago to buy Fording Canadian Coal Trust by April 22, adding that since then the company has reduced total debt by $8 billion, from $13.4 billion to $5.4 billion. The company financed its debt mainly through asset sales.
Commenting on the results, Teck president and CEO Don Lindsay said, "The results of the quarter reflect two important themes. First, our ongoing operations continue to produce strong results, and, second, completing the previously announced asset sales has allowed us to achieve our balance sheet targets and to return to investment grade credit metrics earlier than planned."