The Mining Blog

BHP Billiton has posted an Australian corporate record profit of US$15.3 billion (Underlying EBIT) for the financial year ending 30 June 2006. This profit comes on the back of the booming resources sector.

Although this profit is great news for BHP Billiton shareholders, their record profit has also allowed them to invest a significant amount of money into new growth projects. This investment is good news for the Australian economy and employment.

BHP Billiton also announced a share buy-back program of US$3.0 billion over the next 18 months.

A summary of the results for the full financial year ending 30 June 2006 are as follows:

• Commodity markets remain strong underpinned by supply restrictions and a generally constructive global economy.
• Annual records for all key earnings measures including Underlying EBITDA up 50% to US$18.1 billion and Underlying EBIT up 54% to US$15.3 billion.
• Attributable profit up 63% to US$10.5 billion, including exceptionals, and up 58% to US$10.2 billion, excluding exceptionals.
• EPS up 66%, including exceptionals, and 60%, excluding exceptionals, benefiting from recent buy-backs.
• Underlying EBIT margin and Return on Capital Employed increased to 44% and 35% respectively.
• Record annual production volumes for aluminium, copper, iron ore, nickel and natural gas in a strong demand environment.
• Four major growth projects completed and seven major growth projects approved. 23 projects in execution or feasibility, representing US$13.8 billion of investment.
• Final dividend of 18.5 US cents per share, an increase of 27.6% on last year’s final dividend. This brings the full year dividend to 36.0 US cents per share, up 28.6%.
• Further capital return of US$3.0 billion, bringing total for FY2006 to US$5.0 billion.

(Source: BHP Billiton News Release Number 26/06, 23 Aug 2006)

Further details can be obtained by viewing their full news release.

Please note that this post does not represent financial advice of any sort.

Calvin Close
miningreference.com - Australia’s Premier Mining Directory

This entry was posted on Wednesday, August 23rd, 2006 at 3:04 pm and is filed under BHP Billiton, mining. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.