REPORTING SEASON: BHP Limited (BHP)
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Figure 1: BHP Limited 12 month chart
BHP Billiton Ltd (BHP) posts a FY15 result in-line with expectations and a sound dividend
– BHP Billiton’s (BHP) first full year result since the demerger of its South 32 (S32) business (which was finalised on 25 May 2015) was largely in-line with its recently revised expectations. As a result of the demerger, BHP has released three separate sets of numbers within their report (this report is based on its new underlying numbers which are derived from the company as it currently stands).
– BHP posted a statutory profit from operations of US$8.67Bilion which fell by 62% from FY14 largely due to the fall in the prices of its key products (iron ore and energy), and also due to the spinoff of its S32 assets. BHP’s underlying earnings displayed the direct impact the fall in prices had on the company. The surprises in this result were the larger than expected write-downs, the negative revenue from its petroleum unit and the stronger than expected dividend.
– BHP also advised the market it now predicts that Chinese long term steel demand will be lower than it previously expected, falling to 935 – 985 million metric tons.
– CEO Andrew Mackenzie confirmed that BHP has no plans to cut its dividend in the near term and lifted the full year payout for shareholders. BHP will pay a final dividend to shareholders of $0.62 on 29 September 2015.