HomeBase MetalsSeventh consecutive profit record for BHP Billiton

Seventh consecutive profit record for BHP Billiton

BHP Billiton’s
Mozal smelter in
Melbourne, Australia — MININGREVIEW.COM — 19 August 2008 – BHP Billiton – the world’s largest diversified mining and resources company – has achieved another year of record earnings, driven by excellent operating performance, cost control and the delivery of high margin growth projects into strong market conditions.

Releasing its results here for the year ended 30 June 2008, the company revealed that attributable profit had risen 12.4% from US$13.4 billion to US$15.4 billion, and EPS was up 17.5%, benefiting from buy-backs.

Underlying EBITDA had risen 22.1% to US$28.0 billion and underlying EBIT was up 21.0% to US$24.3 billion with a strong margin of 47.5%, including records in the base metals, iron ore, manganese and energy coal customer sector groups, as well as petroleum.

The results release added that annual production records had been set in seven commodities: copper, iron ore, manganese ore and alloy, alumina and molybdenum, as well as petroleum. Production had increased, although not to record levels, in a further six commodities.

Turning to exploration, gross expenditure for the year ended 30 June 2008 amounted to US$1.4 billion (R10.5 billion). “The success of our exploration efforts is evident through the significant increase in our iron ore and manganese resources and reserves, and the discovery of the Pampa Escondida copper prospect in Chile, said BHP Billiton.

The company continues to invest substantially in its future. “Our project pipeline focuses on high-margin commodities that are expected to create significant future value,” it said. “We have 28 projects in either execution or feasibility, which represents an expected capital investment of US$24.8 billion (R186 billion), as well as other medium-term growth options with expected capital commitments in excess of US$90 billion (R675 billion),” the release concluded.