BHP posts 86 percent profit drop as commodity prices tumble

Associated Press

BHP posts 86 percent profit drop as commodity prices tumble

SYDNEY (AP) — BHP Billiton, the world's biggest miner, reported an 86 percent drop in annual profit on Tuesday amid plummeting commodity prices, as the company warned that China's slowing economy would lead to further market volatility.

BHP saw a net profit of $1.9 billion for the 12 months to June 30, down from $13.8 billion a year ago, the Melbourne, Australia-based company said in a statement. Revenue was down 22 percent to $52 billion.

In response, the mining giant said it would cut costs, lowering its target for capital spending in the next financial year from $9 billion to $8.5 billion.

Miners such as BHP are under increasing pressure as a slowdown in China's economy results in lower demand for key commodities such as iron ore and coal.

In a statement, BHP noted that commodity prices were "notably lower" going into the new financial year.

"In the short term we expect ongoing economic reforms in China to contribute to periods of market volatility," BHP's CEO Andrew Mackenzie said. "While we remain confident in the long-term outlook for commodities demand as emerging economies continue to urbanise and industrialise, we have lowered our forecast of peak Chinese steel demand."

The company declared a final dividend of 62 cents per share.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Latest Energy Jobs

View more Job Listings >>

Archived Articles

PennEnergy Articles
2008 | 2009 | 2010 | 2011 | 2012 | 2013

OGJ Articles
2011 | 2012 | 2013

OGFJ Articles
2011 | 2012 | 2013

Power Engineering Articles
2011 | 2012 | 2013

Power Engineering Intl Articles
2011 | 2012 | 2013

Utility Products Articles
2011 | 2012 | 2013

HydroWorld Articles
2011 | 2012 | 2013

COSPP Articles
2011 | 2012 | 2013

ELP Articles
2011 | 2012 | 2013