Analyst Note| Mathew Hodge, CFA |
No-moat-rated Teck Resources’ second-quarter 2020 adjusted net profit aftertax of CAD 89 million was similar to the prior quarter’s but down significantly from CAD 498 million in the second-quarter 2019. The decline versus last year reflects lower commodity prices. The average coking coal price was down 37%, zinc fell 29%, and copper declined 12%. The received oil price fell a staggering 73% compared with the second-quarter 2019 with the West Texas Intermediate oil price down nearly two thirds to average USD 22 per barrel and the discount for the Western Canadian Select benchmark blowing out.