Strong commodity prices and record production made this another banner year for BHP Billiton (BHP-N, BHP-A).
Net profit for the financial year ended June 30 rose to US$13.42 billion from US$10.45 billion a year earlier, a hefty increase of 28.4%.
Revenues climbed 21% for the year to US$47.47 billion.
The worlds top miner served up record amounts of alumina, aluminium, copper, nickel, iron ore, manganese ore and metallurgical coal.
Higher costs, however, ate away at earnings. Strong demand for commodities pushed up prices for labour, raw materials, fuel, and energy.
Congestion at busy ports, meanwhile, also caused delays and demurrage costs to rise, along with shipping, freight and other distribution charges.
In 2008, management expects significant volume growth in oil, copper, iron ore and nickel.
Chinese demand for raw materials helped sustain real prices for all of the companys commodities at or near their highest levels since the 1970s, BHP said in a statement.
Over time commodity prices will move towards long-run marginal costs of supply, it noted, but this is only likely over the medium term. In the interim, the company stated, prices are likely to stay high relative to historic levels, albeit with increased volatility.
Despite a softening of the economy in the U.S., BHPs prospects look good, given the robust global economy and strong economic activity in Asia and Europe. India recently recorded its fastest economic growth rate in 18 years, while the rate of growth in China shows no signs of slowing.
BHP declared a final dividend of US27, taking the full-year dividend payout to US47 a share, up from US36 a year earlier.
Be the first to comment on "BHP Billiton posts full-year income growth of 28%"