BHP Billiton stays afloat despite tough global economic climate

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The company, which released its results on Tuesday for the year ended 30 June 2013, said that revenue was down 8.7 per cent to 65.968 million dollars and profit for the group was down 29.5 per cent to 10.876 million dollars.

There was an 8.7 per cent change in revenue from 72.226 million dollars in 2012 to 65.968 million dollars in 2013.

Their underlying earnings before interest, taxes and depreciation and amortisation (EBITDA) were recorded at 28.383 million dollars in 2013, a 15.9 per cent change from 33.746 million dollars from 2013.

Operating profit also decreased from 23.752 million dollars in 2012 to 19.225 million dollars in 2013.

The group’s revenues in petroleum and potash and copper businesses increased compared to 2012 except for its coal, aluminium, manganese and nickel businesses, which recorded a decrease in revenue compared to the same period last year.

Total revenue for the Group was recorded at 65,968 million dollars, an 8.7 per cent change from last year’s 72.226 million dollars.

BHP Billiton nonetheless reported that strong financial results were delivered despite slowing global growth and volatile commodity markets.

“BHP Billiton’s strategy of owning and operating large, long life, low cost, expandable, upstream assets diversified by commodity, geography and market remains the foundation for our sector leading shareholder returns,” was said in a press statement.

“To extend our track record and create a more productive and capital efficient organisation, we have concentrated our efforts on those world class basins where we enjoy economies of scale and a competitive advantage.”

A number of coal, petroleum, iron ore and copper projects were completed in the 2013 financial year.

WIAO Port Hedland Inner Harbour Expansion in Australia, which aims to Increases total inner harbour capacity to 220 million tonnes per annum, delivered first production for the 2013 financial year.

Other projects include the copper Escondida Organic Growth Project 1 in Chile and Brazil’s iron ore Samarco Fourth Pellet Plant.

The Group also recorded a 7 per cent increase in total production and a stronger US dollar against several producer currencies, in particular the South African rand, benefited the Group’s cost base during the period, and increased underlying EBIT by 480 million dollars.