BHP Billiton 2015 Profit Plunges On Commodity Prices; Boosts Dividend

(RTTNews) - Anglo-Australian mining giant BHP Billiton Group (BHP, BLT.L, BHP.AX, BBL, BHPBF), comprising of BHP Billiton Ltd. and BHP Billiton plc, reported Tuesday that profit for the year ended June 30, 2015 plunged 86 percent from last year, despite production growth, hurt by the volatile commodity market and the South32 demerger impact. Further, the company slashed capital and exploration expenditure, as well as declared a two percent increase in final dividend.

The Melbourne, Australia-based world's largest miner reported attributable profit of $1.91 billion or $0.36 per share for the full year, 86 percent lower than $13.83 billion or $2.60 per share in the same period last year.

Earnings from continuing operations per ordinary share plunged to $0.65 from last year's $2.56.

Excluding exceptional items, underlying attributable profit for the year was $6.42 billion or $1.21 per basic share, compared to $13.26 billion or $2.49 per basic share in the prior-year period.

Pre-tax profit was $8.06 billion for the year, sharply down from $21.74 billion last year.

Profit from operations (EBIT) for the period plunged 61.7 percent to $8.67 billion from $22.65 billion in the prior-year period. Underlying EBIT declined 46.2 percent to $11.87 billion.

Underlying EBITDA was $21.9 billion and a sector leading underlying EBITDA margin of 50 percent for the 2015 financial year.

BHP Billiton's revenues from continuing operations for the year declined 21.4 percent to $44.64 billion from $56.76 billion in the same period last year. Revenue from group production was $43.46 billion, lower than $55.05 billion recorded in the previous year.

Total revenue decreased 22.2 percent to $52.27 billion from a year ago.

Petroleum production for the year increased 4 percent to a record 255.7 million barrels of oil equivalent, supported by a 67 percent increase in Onshore US liquids.

Total iron ore production improved 13 percent to a record 232.5 million tons, and metallurgical coal, which is also used in steel making, also grew 13 percent to a record 42.6 million tons from last year.

The company declared a two percent higher final dividend of 62 cents per share fully franked, payable on September 29, 2015 to shareholders on record September 11, 2015.

BHP reduced capital and exploration expenditure by 24 percent to $11billion in 2015 and is expected to decline to $8.5 billion in the 2016 financial year and $7 billion in the 2017 financial year.

The company noted that it achieved its productivity target of $4 billion two years ahead of schedule due to its focus on best-in-class performance. It expects further cost reductions in the 2016 financial year across all businesses. It had targeted at least $4 billion of productivity gains from the core portfolio by the end of the 2017 financial year.

Looking ahead to fiscal 2016, BHP Billiton forecast a 7 percent decline in petroleum production to 237 MMboe, 12 percent decrease in copper output to 1.5 million tons, 6 percent decrease in metallurgical coal production to 40 million tons and 2 percent decrease in energy coal production to 40 million tons.

BHP closed Monday's regular trading session at $32.18, up $0.30 on a volume of 7.28 million shares.

In Tuesday's regular trading session on the Australian Securities Exchange, BHP.AX is trading at A$23.34, up $0.45 or 1.97% on a volume of 14.09 million shares.