UPDATE 2-Teck Resources reports surprise profit helped by cost cuts

Tue Apr 26, 2016 6:38am EDT
 
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* Q1 earnings/shr C$0.03 vs est loss of C$0.03

* Fort Hills oil sands project more than 55 pct complete

* Q1 revenue falls 16 pct to C$1.70 bln (Adds details, compares with estimates)

April 26 (Reuters) - Canadian miner Teck Resources Ltd reported a surprise quarterly profit as cost-cutting measures and a weak Canadian dollar helped cushion the impact of lower coal and copper prices.

The global commodity rout has pushed coal and copper prices to multi-year lows, forcing miners to sell assets, lay off workers, and cut dividends and capital spending to preserve cash and reduce debt.

However, a strong U.S. dollar has helped Teck, which sells commodities in the U.S. currency but incurs expenses in local currencies, particularly the Canadian dollar.

Teck, the largest producer of steel-making coal in North America, said on Tuesday it expected coal sales to exceed 6.5 million tonnes in the current quarter.

The company said the construction of the Fort Hills oil sands project in northern Alberta is more than 55 percent complete and was on track for first oil production by late 2017.

The company had earmarked C$2.9 billion for the project, of which about C$1 billion remains to be spent as of April 25, the company said.   Continued...