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- BHP Billiton’s profits hit by lower iron ore and oil prices
BHP Billiton has posted profits for the year ended 30 June 2015 down 86% from the previous financial year to US$1.9 billion or US$0.36/share. Excluding exceptional items, attributable profit was US$7.1 billion, a reduction of 47%.
Group revenue fell from US$56.8 billion to US$44.6 billion (from continuing operations) with iron ore the hardest hit sector, despite production increasing 14% to a record 233 Mt, as the average realised price fell from US$103/wmt in 2014 to US$61/wmt. Underlying EBIT for iron ore fell from US$12.1 billion in 2014 to US$6.9 billion in 2015.
The other major sector to be hit by lower prices was petroleum where EBIT declined from US$5.9 billion to US$1.9 billion, with the net price impact amounting to a reduction of US$4.1 billion.
Capital and exploration expenditure decreased by 24% to US$11.0 billion in the period and is expected to decline to US$8.5 billion in the 2016 financial year and US$7.0 billion in the 2017 financial year.
The company has declared a final dividend of US$0.62/share, taking the total dividend for the year to US$1.24/share
BHP Billiton’s profits hit by lower iron ore and oil prices: BLT
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