BHP Billiton’s net profit rises on the back of cost savings

Australian mining company BHP Billiton has announced its financial results for the half year ended December 31, 2013.
 
According to its financial statement, BHP Billiton posted a net profit of US$8.1 billion for the first half of the financial year 2013-14, up 82.9 percent year on year. In the given period, the company's revenue increased by 5.9 percent year on year to US$33.9 billion. As of December 31, the company's annualized cost savings amounted to $4.9 billion and are expected to increase to $5.5 billion by the end of the current financial year.
 
According to BHP Billiton, in the first half, the company's profit from its iron ore operations increased by 60 percent year on year to $6.5 billion.
 
BHP Billiton said that the total iron ore production guidance for the financial year 2013-14 remains unchanged at 192 million mt. The company's Western Australia Iron Ore business continues to perform strongly, though the production guidance of 212 million mt has been maintained for the financial year 2013-14 as the wet season in northern Australia represents a key risk.