BHP Billiton plc (BBL, BLT.L, BHP, BHP.AX) Wednesday reported a more than two-fold rise in fiscal 2010 profit, driven by strong commodity demand and higher prices. However, the mining giant stated that it remains cautious on the short-term global economy outlook.
The company reported fiscal 2010 profit after tax of US$13.01 billion, compared with US$6.34 billion in the previous year.
Profit attributable to members of BHP Billiton Group rose to US$12.72 billion from US$5.88 billion last year. Earnings per ordinary share were 227.8 US cents, up from 105.4 US cents in fiscal 2009.
Excluding exceptional items, the company's attributable profit rose 16.3% to US$12.47 billion from US$10.72 billion last year, despite significant volatility in the macro economic environment.
Revenue increased 5.2% to US$52.80 billion from US$50.21 billion a year ago. Group production was US$48.19 billion, compared with US$44.11 billion last year. Revenue from third party products declined to US$4.61 billion from US$6.1 billion in fiscal 2009.
The company said it achieved record sales volumes in three of its major commodities: iron ore, metallurgical coal and petroleum, reflecting the recovery in demand and prices. Strong performance from steelmaking raw materials was a major contributor to the volume growth.
Petroleum revenues were US$8.78 billion, compared with US$7.21 billion last year. Total petroleum production rose 15% to 159 million barrels of oil equivalent, helped by strong performance from BHP Billiton operated Shenzi and Pyrenees and improved reservoir performance from Atlantis (USA). Absence of weather related interruptions also supported the production, the company noted.
Aluminium revenue rose 5% to US$4.35 billion from US$4.15 billion in the previous year.
Base Metals generated revenues of US$10.41 billion, a 47% rise from US$7.11 billion a year ago. Average realized prices for all of the key commodities in base metals, except uranium, were higher than fiscal 2009.
Diamonds and Specialty Products generated full-year revenues of US$1.27 billion, a 42% upside from US$896 million a year earlier.
Stainless Steel Materials' revenue soared 54% to US$3.62 billion from US$2.36 billion in fiscal 2009. Iron ore revenues were US$11.14 billion, compared with US$10.05 billion a year earlier.
Meanwhile, the company's Manganese revenues declined 15% from last year to US$2.15 billion, Metallurgical Coal revenues dropped 25% to US$6.06 billion, and Energy Coal revenues declined 35% to US$4.27 billion in fiscal 2010.
BHP Billiton said its board declared a final dividend of 45 US cents per share. Together with the company's interim dividend of 42 US cents per share, paid on March 23, the final dividend brings the total dividend for the year to 87 US cents per share.
The company last week announced its intention to make an all-cash offer to acquire all of the issued and outstanding common shares of Potash Corporation of Saskatchewan Inc. (POT, POT.TO), at a price of US$130 per PotashCorp common share in cash. PotashCorp has rejected the bid.
Looking ahead, BHP Billiton said it remains cautious on the short term outlook for the global economy. However, the company continues to be positive on the global economy's longer term prospects, driven by the continuing urbanization and industrialization of emerging economies.
Further, the company sees a mixed short term outlook for commodities. Fundamentals remain strong for steel making raw materials, particularly iron ore, where there is a lack of low cost supply response expected over the next one to two years, it noted.
The miner also expects medium-term commodity demand to remain heavily dependent on emerging market demand.
On the NYSE, BHP closed Tuesday's trading at US$65.42, down US$1.71, on a volume of 4.98 million shares. BBL ended trading at US$55.34, down US$1.01, on a volume of 2.15 million shares.
On the LSE, BLT.L is trading at 1,802 pence, down 1 pence or 0.06%, on over 1.9 million shares.
BHP.AX is trading at A$37.44 on the ASX, down A$0.10 or 0.27%, on a volume of 17.31 million shares.
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