SYDNEY: Global mining giant BHP Billiton said yesterday first-half net profit soared 83 percent to $8.1bn on the back of spending cuts and strong production across its iron ore and coal businesses.
The result for the six months to December 31 was above expectations and compared to $4.2bn in the previous corresponding period, with revenues climbing 5.9 percent to $33.95bn.
Underlying earnings — which exclude one-off writedowns — rose 31 percent to a higher than forecast $7.8bn, with the world’s biggest miner declaring an interim dividend of 59 cents a share, up 3.5 percent from a year ago.
The result helped push BHP’s share price 1.6 percent higher at the open of Australian trade to A$38.63.
BHP chief executive Andrew Mackenzie said the bumper performance was driven by improvements in productivity and extra volume from its assets.
He said the company, which has scaled back or postponed tens of billions of dollars of investments in recent years as commodity prices slumped, had slashed operating costs by $4.9bn in the past 18 months. “The commitment we made 18 months ago to deliver more tonnes and more barrels from our existing infrastructure at a lower unit cost is delivering tangible results,” he said.
“Annualised productivity led volume and cost efficiencies totalling $4.9bn are now embedded and this is expected to increase to $5.5bn by the end of the 2014 financial year. With strong free cash flow, selective investment and continued simplification, we are well placed to extend our strong track record of capital management,” he added.
The company said there had been strong operating performances across its diversified portfolio, delivering a 10 percent increase in production, with records achieved across three commodities and 10 operations. AFP
