Surging demand from Asia and booming commodities prices have pushed BHP Billiton’s annual net profit up 28,4% to an all-time high of $13,416-billion, the company announced on Wednesday.
Underlying profit, the measure watched by analysts, rose by 35% to $13,68-billion, just above the market consensus of $13,5-billion.
The world’s largest mining company by market capitalisation credited ”solid activity in Asia and Europe” for the record result for the year ended June 30 2007.
”It looks like a solid set of numbers, slightly exceeding the market’s — and our — expectations,” said Brendan Harris, an analyst with Australia’s Macquarie Bank. BHP’s higher-than-expected dividend also sent a ”strong message” to the market that the company expects a ”robust longer-term outlook”, Harris said.
The miner posted a final dividend of 27 United States cents, taking the full-year payout to 47 cents a share, up from 36 cents a year earlier.
In a statement to the Australian Stock Exchange, the mining giant gave a positive outlook for the coming fiscal year, saying commodities prices are likely to remain high relative to historical levels, ”albeit with increased volatility”.
”Despite moderating US economic growth, global economic fundamentals remain strong and the ongoing strength shown by emerging Asian economies (including China) should support global growth,” the company said.
”A strong production report in late July laid the foundations for strong full-year results, which is exactly what Billiton has provided today,” said Keith Bowman, an equity analyst at Hargreaves Lansdown Stockbrokers in the United Kingdom.
BHP Billiton ”continues to provide both broad geographical and commodity exposure, and with no obvious signs of a downturn in Asia to date, market consensus remains positive in tone”, Bowman said.
Revenue for the year climbed by 21% to $47,47-billion from $39,110-billion a year earlier, the company said.
BHP said higher prices boosted earnings for the year by $7,1-billion and higher sales volumes added $438-million, more than offsetting the $859-million that rising costs shaved from earnings.
BHP shares fell 10 cents, or 0,3%, to Aus$35,40 on Wednesday. The annual profit result was announced only minutes before the Australian market closed. The benchmark S&P/ASX 200 index rose by 0,26% on Wednesday to close at 6 005,0. — Sapa-AP