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BHP Billiton Limited (BHP)

  • Tue, Aug. 25, 7:40 AM
    • BHP Billiton (NYSE:BHP+7.4% premarket after reporting its weakest annual earnings since 2003 and cutting its long-term forecast for Chinese steel demand, but reiterating its pledge to fully maintains its dividend.
    • BHP, the last of the big five global miners to report results, said its underlying attributable profit fell to $6.42B for the year to June, below analyst consensus of $7.73B and $13.26B a year earlier; net profit plunged 86%, with BHP taking $2.9B in post-tax charges, mainly on its U.S. shale and Nickel West businesses.
    • BHP forecasts crude steel production in China to fall to 935M-985M metric tons in the mid 2020’s, after saying in May it expected China’s steel output to reach as much as 1.1B tons by the middle of the next decade, but it expects China’s broader economy to lift in the second half of this year, meeting its 7% growth target for 2015.
    • The miner raises its full-year dividend to $1.24/share from $1.21, and reiterates its policy of maintaining or increasing its dividend, which costs at least $US6.5B/year; BHP has not cut its dividend since 1988, and did not rebase its dividend when it spun out South32 earlier this year.
    • To help protect its dividend, BHP says it is cutting capital spending for the 2016 for the third time since February, to $8B.
    | Tue, Aug. 25, 7:40 AM | 8 Comments
  • Tue, Aug. 25, 4:18 AM
    • Mining giant BHP Billiton (NYSE:BHP) posted its worst underlying profit in 10 years amid a commodities slide directly tied to Chinese market turbulence.
    • Underlying profit for the full year of $6.4B was down 52% from the prior year and missed an expected $7.73B. Net profit was $1.91B.
    • BHP is lowering its forecasts for peak steel demand from China, but said "Our margins at 50% remain unquestionably the best in the sector," and pointed to strong operating cash flow protecting the balance sheet.
    • The company is boosting its dividend by 2.5%, to $1.24/share.
    • "Our forecast for Chinese steel production is to peak in the mid 2020s at between 935 and 985 million tonnes per annum," said CEO Andrew MacKenzie.
    • Shares are up 5.5% in a quite green London stock market. In U.S. trading, the company's ADRs are up 5.7% premarket. They're down 32% YTD.
    | Tue, Aug. 25, 4:18 AM | Comment!
  • Wed, Jul. 29, 12:25 PM
    • Cliffs Natural Resources (CLF -0.8%) shares have fluctuated above and below the flatline even after reporting a bigger than expected Q2 loss, driven by lower U.S. iron ore pricing and shipments.
    • CLF says it expects to see improved industry operating conditions and profitability in H2, but it nevertheless cuts its 2015 sales volume forecast for U.S. iron ore operations by 1.5M tons to 19M tons of iron ore pellets, blaming a supply glut created by heavy steel imports.
    • Ben Levisohn of Barron's speculates CLF shares may be helped today by investors betting that steel prices will head higher after steel producers filed a trade case, or it could be a short squeeze as short-interest remains high despite being well off its peaks.
    • Other iron ore producers are higher: BHP +1.5%, RIO +1.2%, VALE +3.1%.
    | Wed, Jul. 29, 12:25 PM | 3 Comments
  • Mon, Feb. 23, 5:22 PM
    • BHP Billiton (NYSE:BHP) reports a 47% Y/Y drop in net profit to US$4.27B for the six months through December, down from a $8.11B profit a year earlier but ahead of analyst consensus for $3.59B.
    • BHP's underlying profit for the six months, which excludes non-cash charges against assets including some oil fields in North Louisiana, was down 31% Y/Y at $5.35B; however, BHP is raising its interim dividend 5% to US$0.62/share.
    • BHP says it spent $6.4B on finding and developing new deposits and in expanding existing ones, but that was 23% lower than the $8.3B it spent in the same six-month period a year earlier.
    • Also says it is focusing its cap spending more on improving efficiency and reducing costs at its existing projects rather than developing new ones.
    | Mon, Feb. 23, 5:22 PM | 6 Comments
  • Oct. 27, 2014, 6:25 PM
    • Cliffs Natural Resources (NYSE:CLF) -0.2% AH after reporting Q3 earnings that beat expectations and a 16% Y/Y drop in revenues that nevertheless met estimates.
    • CLF swung to a loss in the quarter, dragged down by a $6B writedown related to its purchase of a Canadian iron ore mine as well as 32% lower iron ore prices and 17% lower met coal prices.
    • CLF says Q3 costs at its eastern Canadian operations were $81.71/ton, and it expects costs to remain at $80-$85; the big three miners - BHP, RIO and VALE - control massive mines, ports and railroads, which allows them to produce iron ore at $50/ton or lower.
    • Iron ore pellet sales volume totaled 6.8M tons (+8% Y/Y) for the U.S., 3.1M tons (+11%) for Asia Pacific, and 2.3M tons for eastern Canada (-12%); North American coal sales volume was 1.9M tons (+15%).
    • Gross margin narrowed to 9.8% from 22.5% a year earlier.
    • "Despite continued cost cutting progress at Bloom Lake, Phase I is not feasible. By the end of this year, we will have a solution for Bloom Lake," CEO Lourenco Goncalves says.
    | Oct. 27, 2014, 6:25 PM | 7 Comments
  • Aug. 1, 2014, 7:59 AM
    • ArcelorMittal (NYSE:MT-6.3% premarket after reporting below consensus Q2 earnings and warning it will miss its target for full-year earnings, as shipments are being hit by lower commodity prices.
    • MT says FY 2014 EBITDA likely would total more than $7B, below a previous forecast of ~$8B, reflecting a probable average iron ore price of $105/metric ton for this year vs. prior expectations for $120.
    • While the softening of iron ore prices may hurt MT's relatively small mining segment, the result could be countered by stronger demand for the steel that makes up most of the company’s business.
    • Also, MT agrees to acquire a near 50% effective stake in Guinea's Mount Nimba iron ore project, buying out shareholders BHP and Areva for an undisclosed sum; the high-quality deposit is 40 km from MT's existing Liberian iron ore mine, which means the steelmaker could take advantage of its existing rail and port infrastructure in Liberia to lower development costs.
    | Aug. 1, 2014, 7:59 AM | 4 Comments
  • Feb. 18, 2014, 3:25 AM
    • BHP Billiton's (BHP) underlying FH1 profit jumped 31% to $7.76B and exceeded consensus of $6.9B, helped by a rise in its earnings from its iron ore operations, cost cuts and the improving global economy.
    • Revenue increased 5.9% to $33.9B.
    • Annualized cost cuts $4.9B, projects $5.5B by end of FY.
    • Expects global economy to continue growing.
    • Iron ore underlying EBIT jumped 60% to $6.5B; copper slipped $200M to $2.9B; coal $510M vs $79M prior; petroleum -16% to $2.5B.
    • BHP declared a dividend of $0.59 for the period, up from $0.59 from the previous corresponding period. The record date is March 7 and the payment date is March 26.
    • The mining giant said its strong cash flows could enable it to consider a substantial dividend increase and shareholder return in the future. The company also plans to reduce net debt to $25B by June 2014 from $27.1B.
    • Shares +0.4% in London. (PR)
    | Feb. 18, 2014, 3:25 AM | 1 Comment
  • Aug. 20, 2013, 8:40 AM
    • SocGen sees BHP Billiton's (BHP) FY 2013 results as a net negative, particularly plans to invest $2.6B during the next four years digging shafts at the Jansen potash project; most market participants believe the project is likely to be NPV destructive.
    • CEO Andrew Mackenzie: ""The whole basis of the strategy.. is that we want to retain complete flexibility to enter the [potash] market at a timing which we think is right to maximize returns for our sharheolders."
    • SocGen continues bearish on BHP shares; if investors were to invest 26% of their portfolio in COP and the remaining 74% in RIO, the firm says they can replicate the commodity mix and asset quality of BHP but pay a 30% lower P/E and receive a 10% higher dividend yield.
    • Shares -0.8% premarket.
    | Aug. 20, 2013, 8:40 AM | 1 Comment
  • Aug. 20, 2013, 3:30 AM
    • BHP Billiton (BHP) FY profit before items $11.8B vs $17.2B and consensus of $12.7B.
    • Revenue $65.97B vs $72.23B.
    • Net profit -30% to $10.9B.
    • EPS $2.037 vs $2.884
    • Pretax profit $17.87B vs $23.02B last year.
    • Profit hurt by exceptional items of 922M and a temporarily increased tax rate, while emerging economies experienced lower-than-expected growth in H2.
    • Ups final dividend by $0.02 to $0.59, slightly below forecasts for $0.60.
    • BHP to cut capex by 26% in 2014 to $16.2B.
    • Plans to invest $2.6B in digging shafts and installing infrastructure at its Jansen potash project in Canada over the next few years. However, BHP didn't provide a timetable for when output would begin. The miner could sell stake to partners.
    • Shares -3.2% in London. (PR)
    | Aug. 20, 2013, 3:30 AM | Comment!
  • Jul. 17, 2013, 3:17 AM
    BHP Billiton's (BHP) iron ore output rose 9% in FY 2013 to a record 187M tons, a figure that should grow this year as the company maintains plans to boost annual capacity to 220M tons by December. The increase in production at BHP, as well as at Rio Tinto (RIO), comes despite the slowdown in growth in China, a major export market. The strategy of the majors is to tighten their grip on the market and maximize economies of scale while other miners struggle. "As long as they keep margins well ahead of a declining iron ore price, they are winning," says analyst Gavin Wendt. (PR)
    | Jul. 17, 2013, 3:17 AM | Comment!
  • Feb. 20, 2013, 8:19 AM
    BHP Billiton's (BHPnew CEO will take over as the miner suffers its worst profit drop in more than a decade, slumping 58% in H1 to $4.2B. Revenues fell 14%. Says it cut $944M in costs over the past half year, but did not outline a broader target for cost cuts. Believes global economy will strengthen over the next 12 months, providing support for commodities demand and pricing. Shares -2.5% premarket.
    | Feb. 20, 2013, 8:19 AM | Comment!
  • Nov. 8, 2012, 8:52 AM
    Losses at BHP Billiton's (BHP) U.S. shale-gas operation Petrohawk Energy deepened in Q3 due to continued weakness in natural gas prices. BHP reports a loss from continuing operations before income tax of $211M for the nine months to Sept. 30 for Petrohawk vs. a profit of $201M in the year-earlier period.
    | Nov. 8, 2012, 8:52 AM | Comment!
  • Aug. 22, 2012, 2:58 AM
    BHP Billiton (BHP): H2 profit before items -35% to $7.16B vs. consensus of $6.96B. Abandons $20B Olympic Dam copper expansion and will look at a "less capital intensive option." Won't approve any new projects until at least mid-2013. It's the biggest sign of how China's slowdown has stalled the global mining boom. (PR)
    | Aug. 22, 2012, 2:58 AM | 11 Comments
  • Jun. 24, 2012, 4:39 AM
    Australia's 30% mining tax is going to be a bit of a bust, predicts UBS, but it's still going to hit corporate earnings. The bank estimates that the tax will generate A$3.2B in FY 2013 and 2014, under half the Treasury's forecast of $6.5B. And citing the mining and carbon charges, the bank cut its profit estimate for BHP and Rio Tinto (RIO) by 4%.
    | Jun. 24, 2012, 4:39 AM | Comment!
  • Feb. 8, 2012, 3:42 AM
    More on BHP (BHP) H1: Performance hurt by lower output at BHP’s Australian coal ops because of floods, strikes and lower copper output in Chile, lower metal prices, and higher costs. Gives "cautious" market outlook due to EU debt crisis, and general manufacturing and construction weakness. Shares flat in London. (PR .pdf)
    | Feb. 8, 2012, 3:42 AM | Comment!
  • Feb. 8, 2012, 3:38 AM
    BHP Billiton (BHP): H1 net profit -5.5% to $9.94B vs consensus of $10B, revenue +9.7% to US$37.48B. Ups dividend to $0.55 from $0.46 a year earlier. (PR .pdf)
    | Feb. 8, 2012, 3:38 AM | Comment!
Company Description
BHP Billiton Ltd is a natural resources company. The Company is engaged in the producing commodities, including iron ore, metallurgical and energy coal, conventional and unconventional oil and gas, copper, aluminium, manganese, uranium, nickel and silver.