BHP Billiton H1 Profits up 41.3%, As CEO Steps Down

Multi commodity miner BHP Billiton said that first half net profit jumped 41.3 percent to $6.168 billion. Earnings benefited from rising production and commodity prices. The company raised the interim dividend to $0.20 a share from $0.175 last year.

The diamond group was one of only two groups that did not increase their contribution. Diamond and specialty products group's underlying EBIT dropped 59.8 percent to $105 million. The company pointed at higher unit costs at Ekati and the sale of the Australian fertilizer operations acquired as part of the takeover of Australia's WMC Resources in 2005 as the leading cause to the drop.

The stainless steel customer group achieved the largest increase, as higher nickel and cobalt prices were the main contributors to the growth with an average London Metal Exchange nickel price doubling to $13.81 a pound.

“We do not anticipate a return of prices to longer run averages over the medium term,” BHP Billiton said in a statement, expressing confidence in China’s continued economic growth, which will maintain commodity prices.

In related news, the company announced that its CEO for the past five years, Chip Goodyear, will step down by the end of calendar 2007. “The decision to retire was always going to be a difficult one but change and regeneration are part of corporate life, just as they are part of life.” A successor was not named.