Strong results for BHP

BHP Billiton yesterday reported a strong financial result for the year ended 30 June 2009, despite recording a 49% slump in operational profits.

BHP Billiton yesterday reported a strong financial result for the year ended 30 June 2009, despite recording a 49% slump in operational profits.

The company reported a 15% drop in revenues and a 25% drop in earnings before interest and tax.

Furthermore, the total profit from operations for the year was US$12.2 billion, compared to US$24.1 billion in 2008.

However, BHP also increased its net operating cash flow by 5.9% to US$18.9 billion and its dividend per share from 70 to 82 US cents.

According to the company, the results demonstrate the success of its strategy to deliver a consistently strong performance throughout the cycle.

“Our portfolio of long-life, low-cost and diversified assets continued to yield strong margins and cash flows, despite the pressures of the current economic environment,” the company said.

“Our low financial and operational leverage and a strong balance sheet enabled us to continue to invest in future growth.

“In the long term we continue to expect strong growth in demand for our commodities.

“As we have consistently stated, long term prices will continue to be driven by the long-run marginal cost of supply.

“With reduced capital investment over the past year, supply may struggle to keep pace with demand in the medium term when growth recovers.”

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