BHP Billiton's net profit soars 116.5 percent in FY 2009-10

Wednesday, 25 August 2010 14:41:30 (GMT+2)

On August 25, Australian mining company BHP Billiton Ltd announced its financial results for the fiscal year ended June 30, 2010, stating that the company delivered another strong set of results despite significant volatility in the macro economic environment, with growth in profit.

According to the company's unaudited financial statement prepared in accordance with International Financial Reporting Standards (IFRS), BHP Billiton posted a full fiscal year net profit of US$12.72 billion for the year ended June 30, 2010, up by 116.5 percent from US$5.87 billion in the previous year. In the subject period, the company's net profit excluding exceptional items increased by 16.3 percent to US$12.47 billion from US$10.72 billion, while its revenue was up by 5.2 percent year on year to US$52.8 billion from US$50.21 billion.

While the company's EBIT increased by 8.3 percent to US$19.72 billion from US$18.21 billion, its EBITDA reached US$24.51 billion, increasing 10 percent compared to the previous year's US$22.76 billion.

The mining giant said, "Record sales volumes were achieved in three of our major commodities as our focus on efficiency and productivity at all points in the cycle ensured we were well positioned to capitalize on the recovery in demand and prices. Local currency costs were well controlled across the group; however, the weaker US dollar had a negative exchange rate impact."

Regarding the economic outlook, the company said, "BHP Billiton remains cautious on the short-term outlook for the global economy. After a period of rapid recovery in the developing world, economies such as Brazil and India have returned to full output and the focus has now shifted away from supporting growth, towards controlling inflation. Uncertainty continues to surround the developed world as governments adjust fiscal policies following a period of significant stimulus and subsequent increase in sovereign debt levels."

In the Pilbara, Australia, BHP said that it continued to advance the proposed iron pre-production joint venture with Rio Tinto with a key focus on gaining regulatory approval.

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