Miner BHP Billiton Posts Record Half Year Profits

BHP Billiton this morning posted record high earnings from its mining operations, taking advantage of what it calls “strong demand conditions”. Attributable profit for the six months was $2.8 billion, a 127 percent increase, with EBIT from diamonds rising 63 percent to $317 million.

BHP's record half year, ended December 31, comprises record half yearly EBITDA, EBIT and attributable profit. EBITDA increased 67 percent to $5.2 billion while EBIT increased 95 percent to $4.3 billion (both excluding exceptional items).

The results were driven by record half yearly production volumes and rising prices with copper, petroleum products, energy coal, manganese ore and alloys, metallurgical coal, aluminium, diamonds, iron ore, ferrochrome and nickel making the most significant contributions.

The Diamonds and Specialty Products group had EBIT of $317 million, an increase of $122 million compared with the corresponding period. BHP said the increase was mainly attributable to higher prices and sales volumes. This was partially offset by the impact of stronger Canadian$/US$ and rand/US$ average exchange rates on operating costs, and higher diamond royalties arising from increased profits.

The miner reiterated its warning that its Ekati diamond mine will suffer from the processing of lower grade, lower value material at the mine. BHP Billiton first warned of decreased earnings from the Canadian diamond mine in October of last year.