BHP interim profit slumps 58%
PERTH (miningweekly.com) - The world’s largest diversified miner BHP Billiton on Wednesday reported that its profit for the interim period to December was down some 57.8% compared with the previous corresponding period, to $4.2-billion.
The miner, which on Wednesday also lost its CEO, reported that the December half of 2012 was challenging for the global resources industry, as substantially lower commodity prices and resilient producer currencies weighed on margins and profitability.
Underlying earnings before interest and tax (Ebit) declined by 38% during the period under review, to $9.8-billion, while attributable profit decreased by 43% to $5.7-billion. Revenue for the period was down 14.1% to $32.2-billion.
BHP noted that the external influence of lower commodity prices, a weak US dollar and inflation reduced underlying Ebit by a cumulative $6.2-billion, and more than offset the contribution from stronger volumes and operating cost savings.
However, the miner said that, despite the challenging market environment, the group’s underlying Ebit remained in excess of 30%, while underlying return on capital was at 18%.
Meanwhile, during the half-year under review, BHP also realised some $4.3-billion from asset sales, which was consistent with its ongoing commitment to simplify the portfolio over time.
The miner said it would continue to selectively pursue asset divestment opportunities, with a firm focus on value.
Looking ahead, BHP expected a general improvement in the global economy in the short term to support demand and prices for a number of its commodities. However, the miner noted that the addition of low-cost supply in several markets was expected to dampen the pricing upside.
In iron-ore, substantial new supply from low-cost basins in the Pilbara and in Brazil were either under construction or planned, while demand growth rates were expected to decelerate as the Chinese economy matured, following a period of steel-intensive, infrastructure-led growth.
Similarly, rising metallurgical coal demand was likely to be met by supply from the low-cost, high-quality basins, while overcapacity in the aluminium and nickel industries was likely to persist for the foreseeable future.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation