[QODLink]
Asia-Pacific
BHP Billiton annual profits dive
Slowdown in global economic growth blamed for weaker prices for the company's key commodities.
Last Modified: 22 Aug 2012 16:41
Lower commodity prices and high write-downs on the company's key commodities hurt performance [AFP]

BHP Billiton Ltd, the world's biggest miner, has said that its annual profits plunged more than a third as a slowdown in global economic growth led to weaker prices for its key commodities.

The company blamed its performance on sharply lower commodity prices and high write-downs on its shale gas and nickel assets.

Net profit for the 12 months to June 30 was $15.4 billion, down 34.8 per cent from $23.6 billion in the same period a year ago, Melbourne-based BHP said in a statement.

Revenue for the year rose 0.7 per cent to $72.2 billion, from $71.7 billion last year.

Immediately after releasing the results, BHP announced it was delaying a plan for a massive $30 billion expansion of its Olympic Dam uranium and copper mine in southern Australia.

CEO Marius Kloppers cited lower commodity prices and higher capital costs as reasons behind the delay. The company said it would explore the possibility of a less expensive expansion instead.

In the short-term, BHP said it anticipates more volatility in commodity markets amid weakness in the manufacturing and construction sectors.

"However, in the medium term we expect supportive economic policy and a broad growth bias, particularly in China, to lead to measured improvement in the external environment beginning in the first half of the 2013 financial year," the miner said.

BHP declared a final dividend of 57 cents a share.

237

Source:
Agencies
Topics in this article
People
Country
City
Featured on Al Jazeera
Swathes of the British electorate continue to show discontent with all things European, including immigration.
Astronomers have captured images of primordial galaxies that helped light up the cosmos after the Big Bang.
Critics assail British photographer's portrayal of indigenous people, but he says he's highlighting their plight.
As Western stars re-release 1980s charity hit, many Africans say it's a demeaning relic that can do more harm than good.
Featured
No one convicted after 58 people gunned down in cold blood in 2009 in the country's worst political mass killing.
While hosting the World Internet Conference, China tries Tiananmen activist for leaking 'state secrets' to US website.
Once staunchly anti-immigrant, some observers say the conservative US state could lead the way in documenting migrants.
NGOs say women without formal documentation are being imprisoned after giving birth in Malaysia.
Public stripping and assault of woman and rival protests thereafter highlight Kenya's gender-relations divide.