In 2016, Teck Resources (TSX:TECK.B; NYSE:TECK), B.C.’s largest mining company, did not even make Business in Vancouver’s Top 100 Most Profitable Companies List, due to a commodities price crash that resulted in the company recording a $3.6 billion impairment and posting a $2.5 billion loss in 2015.
Two years later, it’s No. 1 – a position it last held in 2012, at the end of a commodities supercycle – based on its 2017 net profits. Teck ended 2017 with record revenue of $12 billion and record cash flow of $5.1 billion. According to Teck’s annual audited financial statements for 2017, the company posted $2.5 billion net profit compared with 2016’s $1 billion.
While that jump back onto the top spot has something to do with a recovery in commodity prices, it also has a lot to do with the way the company is structured and the way it positions itself. Continue Reading →