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IMMEDIATE
17 December 1999 63/99
BHP Half Year Profit Report
November 1999
Half year ended 30 November Results Summary 1999 1998 Change Operating revenue($ million) - Sales revenue 9527 9954 -4.3% - Other revenue 610 614 -0.7% 10137 10568 -4.1% Operating profit attributable to BHP shareholders ($million) Excluding abnormal items 809 436 +85.6% Including abnormal items 1081 436 +147.9% Basic earnings per share (cents) - Excluding abnormal items 46.0 25.3 +81.8% - Including abnormal items 61.5 25.3 +143.1% Group Results and Dividend Half Year Result The operating
profit after income tax excluding abnormal items attributable to BHP
shareholders for the half year ended 30 November 1999 was $809 million, an
increase of $373 million or 85.6% compared with the corresponding
period. Including
abnormal items, the profit was $1 081 million, an increase of $645 million
compared with the corresponding period. The result included a net abnormal
profit of $272 million, comprising: For details of abnormal items by segment,
refer to page 14. There were no abnormal items in the corresponding period. Basic earnings per share were 46.0 cents
excluding abnormal items and 61.5 cents including abnormal items. Comparative
earnings per share for the half year ended 30 November 1998 were 25.3
cents. Dividend An unfranked dividend of 25 cents per
share was declared and paid during the half year, the same amount as the
dividend in the corresponding period. The Dividend Investment Plan was suspended
following payment of the half yearly dividend on 24 November 1999. Since the
dividend was unfranked, the Bonus Share Plan (BSP) was suspended in accordance
with the Company’s Constitution and Rule 8 of the BSP on 17 September
1999. Change of financial year Directors announced that the financial
year end for the BHP Group would change from 31 May to 30 June with effect from
30 June 2000. The Company will report results for the 13 months to 30 June 2000
and release to the Australian Stock Exchange (ASX) on 27 July 2000. The
Company’s profit report for the period ending 31 March 2000 will be
released to the ASX on 4 May 2000. Operating result excluding abnormal items The following major factors affected
operating profit after income tax, excluding abnormal items, attributable to BHP
shareholders for the half year ended 30 November 1999 compared with the
corresponding period: Costs Lower costs of approximately $430 million
($275 million after tax) were achieved during the half year compared with the
corresponding period. Benefits from cost reduction initiatives continue to be
reflected in lower production and overhead costs throughout BHP, with
significant reductions being achieved within the Minerals and Steel businesses.
In addition, lower borrowing costs resulted from a reduction in funding levels.
Exchange rates Compared with the corresponding period,
foreign currency fluctuations net of hedging had a favourable effect of
approximately $90 million. Exploration expenditure Exploration expenditure charged to profit
decreased by approximately $70 million compared with the corresponding period
mainly reflecting a reduction in the Minerals worldwide exploration
program. Ceased/Sold operations Decisions to close or cease operations
including the Hartley platinum mine (Zimbabwe), Beenup mineral sands operation
(Western Australia) and North America copper had a favourable effect on results
of approximately $105 million compared with the corresponding period. This was
partly offset by profits of approximately $50 million in the corresponding
period from manganese operations and other assets sold. New operations Profits from diamond sales at the EKATI
(TM) diamond mine were approximately $80 million for the half year. This was
partly offset by operating losses in the current half year of approximately $60
million following the start up of the HBI operation (Western Australia). Volumes Higher sales volumes have increased profit
by approximately $10 million compared with the corresponding period. This
reflects the return to normal operating conditions at Bass Strait (Victoria)
following the Longford incident in September 1998. Prices Most of BHP’s major products
(including coal, steel and iron ore) continued to be affected by lower commodity
prices, which has reduced profit by approximately $295 million compared with the
corresponding period. These reductions were partly offset by higher average
realised oil prices after commodity hedging which increased the result by
approximately $150 million compared with the corresponding period. Asset sales Profits from sale of assets were
approximately $20million lower
than in the corresponding period. Business Results (after income
tax) Excluding
abnormals 1999 $Million 1998 %
Change 1999 1998 %Change M inerals 533 569 582 569 +2.3 Steel 169 204 232 204 +13.7 Petroleum 410 201 459 201 +128.4 Services 40 82 45 82 -45.1 Net unallocated (252) (232) (256) (232) Group and 110) (373) - (373) Operating profit 790 451 1 062 451 +135.5 Outside equity interests 19 (15) 19 (15) Operating profit 809 436 1
081 436 +147.9 (1) Comparative figures
Minerals Minerals’ result for the half year
was a profit of $533 million, a decrease of $36 million or 6.3% compared with
the corresponding period. Including an abnormal tax benefit relating
to the restatement of deferred tax balances following the change in the
Australian company tax rate, the result for the half year was a profit of $582
million. There were no abnormal items in the corresponding period. Major factors which contributed to the
result were: These were partly offset by:
Sales revenue was $4 036 million, 16.2%
lower than in the corresponding period, mainly due to lower prices for iron ore,
coal and copper, lower iron ore volumes and lower copper volumes following the
closure of North America copper operations. The average price booked for copper
shipments, after hedging and finalisation adjustments, for the half year was
US$0.76 per pound (1998 - US$0.78). Finalisation adjustments after tax,
representing adjustments on prior period shipments settled in the November 1999
half year were $32 million favourable (1998 - $9 million unfavourable). Unhedged copper shipments not finalised at
30 November 1999 have been brought to account at US$0.80 per pound. The LME
copper spot price on Tuesday 30 November 1999 was US$0.79 per pound. As at 30 November 1999, for the three
months ending 28 February 2000 anticipated shipments are 22% covered by forward
contracts at an average price of US$0.77 per pound, 1.0% covered by call options
at an average price of US$0.84 per pound, and 15% covered by collar options with
a minimum price of US$0.74 per pound and maximum price of US$0.90 per pound. For
the three months ending 31 May 2000 anticipated shipments are 6% covered by
forward contracts at an average price of US$0.81 per pound and 15% covered by
collar options with a minimum price of US$0.74 per pound and maximum price of
US$0.90 per pound. Exploration expenditure was $30 million
for the half year (1998 - $115 million) and the charge against profit was $25
million (1998 - $97 million), reflecting a reduction in the worldwide
exploration program. Significant developments during the half
year included: Steel Steel’s result for the half year was
a profit of $169 million, a decrease of $35 million or 17.2% compared with the
corresponding period. Including an abnormal tax benefit relating
to the restatement of deferred tax balances following the change in the
Australian company tax rate, the result for the half year was a profit of $232
million. There were no abnormal items in the corresponding period. Major factors which contributed to the
result were: These were partly offset by: Total steel despatches from all operations
were 4.042 million tonnes, 1.8% below the corresponding period: - Australian domestic despatches were
2.128 million tonnes, up 1.2%; - Australian export despatches were 1.258
million tonnes, down 14.2%; - New Zealand steel despatches were 0.287
million tonnes, up 7.1%; and - despatches from overseas plants were
0.369 million tonnes, up 33.2%. Significant developments during the half
year included: Petroleum Petroleum’s result for the half year
was a profit of $410 million, an increase of $209 million or 104.0% compared
with the corresponding period. Including an abnormal tax benefit relating
to the restatement of deferred tax balances following the change in the
Australian company tax rate, the result for the half year was a profit of $459
million. There were no abnormal items in the corresponding period. Major factors which contributed to the
result were: These were partly offset by: As at 30 November 1999, for the three
months ending 29 February 2000, 2.0 million barrels of estimated oil and
condensate sales (after third party entitlements) have been hedged at an average
price of US$21.15 per barrel, and 7.8 million barrels are covered by zero cost
collar options with a downside average of US$15.97 per barrel and an upside
average of US$21.78 per barrel. For the three months ending 31 May 2000, 3.3
million barrels of estimated oil and condensate sales (after third party
entitlements) have been hedged at an average price of US$20.82 per barrel, and
5.1 million barrels are covered by zero cost collar options with a downside
average of US$17.23 per barrel and an upside average of US$23.55 per barrel. Oil and condensate production was 9%
higher than the corresponding period due to higher production at Bass Strait,
the recently commissioned Laminaria/Corallina fields (North West Australia), and
higher gas nominations at Bruce (UK). These were partly offset by lower
production following the sale of producing assets in the Timor Sea (North West
Australia) and the sale of Elang/Kakatua/Kakatua North producing fields, lower
production from Griffin (Western Australia) reflecting natural field decline,
and lower Liverpool Bay (UK) production due to repairs and maintenance. Natural
gas production was 4% lower mainly due to the sale of the UK Southern North Sea
assets, lower Victorian demand for Bass Strait gas and lower Griffin production.
This has been partly offset by higher gas production from the offshore US
producing properties due to increased facility capacity. Exploration expenditure for the half year
was $100 million (1998 - $140 million). Exploration expenditure charged to
profit was $79 million (1998 - $79 million). Significant developments during the half
year included: Services Services’ result for the half year
was a profit of $40 million, a decrease of $42 million or 51.2% compared with
the corresponding period. Including an abnormal tax benefit relating
to the restatement of deferred tax balances following the change in the
Australian company tax rate, the result for the half year was a profit of $45
million. There were no abnormal items in the corresponding period. The major factor which contributed to the
variation was a $46 million profit (no tax effect) on the partial sale of
BHP’s investment in Orbital Engine Corporation Limited in the
corresponding period. Significant developments during the
current half year included: Net unallocated interest Net Unallocated Interest expense was $252
million for the half year compared with $232 million for the corresponding
period. This increase was mainly due to lower capitalised interest in the
current half year for HBI, Escondida and EKATIä ,
lower interest income, an over provision for income tax in
the corresponding period and higher interest rates in the US and Australia,
largely offset by lower funding levels. Including an abnormal tax expense relating
to the restatement of deferred tax balances following the change in the
Australian company tax rate, Net Unallocated Interest expense for the half year
was $256 million. There were no abnormal items in the corresponding period. A significant development during the
current half year was the Federal Court ruling in BHP’s favour regarding a
dispute concerning the deductibility of financing costs paid to General Electric
Company in connection with the acquisition of the Utah Group in the early
1980’s. The Australian Taxation Office has subsequently appealed the
decision. No adjustments will be made to the Group accounts pending conclusion
of this matter. Group and unallocated items The result for Group and unallocated items
was a loss of $110 million for the half year compared with a loss of $373
million for the corresponding period. The improvement was mainly due to lower
losses of $80 million (after tax) from external foreign currency hedging
compared with losses of $249 million in the corresponding period. Including abnormal items the result was
nil for the half year. The abnormal items comprised: There were no abnormal items in the
corresponding period. Outside equity interests Outside equity interests’ share of
operating profit decreased mainly due to adjustments attributable to minority
shareholders of the Moura coal mine following completion of the sale in August
1999, and a lower result at Ok Tedi during the current half year. Consolidated Financial
Results Half year ended 30
November 1999 1998 %
Change $ Million $ Million Operating revenue Sales 9527 9954 -4.3 Interest
revenue 42 99 -57.6 Other
revenue 568 515 +10.3 10 137 10568 -4.1 Operating
profit including abnormal items, beforedepreciation,
amortisation and borro 2531 2302 +9.9 Deduct : Depreciation and
amortisation 962 1 075 -10.5 Borrowing
costs(1) 355 390 -9.0 *Operating
profit before income tax (a) 1 214 837 +45.0 Deduct :
**Income tax expense attributable to operating
profit (a) 152 386 -60.6 Operating profit after income
tax 1 062 451 +135.5 Outside
equity interests in operating profit
after income tax 19 (15) Operating
profit after income tax, attributable to members of the BHP
Entity 1 081 436 +147.9 (a) The operating profit after income tax,
attributable to members
of the BHP Entity comprises: Operating
profit before abnormal items and income
tax 1 214 837 +45.0 Income tax expense attributable to operating profit before abnormal items (424) (386) Operating profit after income tax before
abnormal items 790 451 +75.2 Outside
equity interests in operating profit after income tax
before abnormal items 19 (15) Operating profit after income tax, before abnormal items,
attributable to members of the BHP Entity 809 436 +85.6 Abnormal
items included in operating profit
before income tax - - Abnormal
income tax benefit 272 Abnormal
items after income tax 272 - Operating
profit after income tax, attributable to members of the BHP
Entity 1 081 436 +147.9 Average
M/US$ hedge settlement rate 65 0 61 0 (1)
$17m $121m Consolidated Financial
Results Revenue Sales revenue
of $9 527 million decreased by $427 million or 4.3% compared with the
corresponding period, mainly due to lower prices for coal, steel and iron ore,
and lower copper volumes reflecting the closure of North America copper
operations. Other revenue, including interest income, decreased by $4 million.
Total operating revenue decreased by $431 million to $10 137 million. Depreciation and Amortisation Depreciation and amortisation charges
decreased by $113 million to $962 million. The decrease relates mainly to
depreciation in the corresponding period on businesses now closed, ceased
operating or sold, the favourable effect of exchange rate variations and lower
depreciation following the write-down of certain assets at 31 May 1999. These
decreases were partly offset by higher depreciation following commissioning of
the EKATI (TM) diamond mine, and
the Escondida oxide plant and phase 3.5 expansion project, and higher Petroleum
production. Borrowing costs Borrowing costs decreased by $35 million
to $355 million, mainly due to lower funding levels partly offset by lower
capitalised interest and higher interest rates in the US and Australia. Income Tax Expense Excluding abnormal items, income tax
expense of $424 million was $38 million higher than for the corresponding
period. The charge for the half year represented an effective tax rate of 34.9%
(1998 - 46.1%) which is lower than the nominal Australian tax rate of 36%
primarily due to partial recognition of tax benefits mainly in respect of prior
year overseas exploration expenditure which have been recognised due to
increased income from North American operations, in addition to prior year over
provisions. These factors were partly offset by non-deductible interest expense
on preference shares, non-deductible accounting depreciation and amortisation,
and overseas exploration expenditure for which no deduction is presently
available. Financial ratios At 30 November 1999 BHP’s gearing
ratio was 50.4% compared to 54.2% at May 1999. Based on earnings before interest paid and
tax (EBIT) excluding abnormal items interest cover for the half year was 4.2
times compared with 1.8 times for the May 1999 year and 2.4 times for the
corresponding period. Based on earnings before interest paid, tax and
depreciation (EBITDA) excluding abnormal items interest cover for the half year
was 6.8 times compared with 4.2 times for the May 1999 year and 4.5 times for
the corresponding period. Statutory Information
Significant Features
Including abnormals
$Million
$Million
$Million
interest
unallocated items
before outside equity interests
attributable to
members of the
BHP Entity
Half year ended 30 November | ||
1999 |
1998 | |
Basic earnings per share (cents) (1) |
||
- Excluding abnormal items |
46.0 |
25.3 |
- Including abnormal items |
61.5 |
25.3 |
Diluted earnings per share (cents) |
||
- Excluding abnormal items |
45.3 |
25.2 |
- Including abnormal items |
60.2 |
25.2 |
Basic earnings per American Depositary Share (US cents) (2) |
||
- Excluding abnormal items |
58.6 |
31.8 |
- Including abnormal items |
78.4 |
31.8 |
Interim dividend paid (cents) (3) |
25.0 |
25.0 |
(1) Based on operating profit after income tax attributable to members of the BHP Entity divided by the weighted average number of fully paid ordinary shares. The weighted average number of shares was 1,758,419,578 (1998 - 1,723,800,955 excluding 338,066,630 BHP shares held by the Beswick Group which were bought back and cancelled in March 1999).
(2) Each American Depositary Share (ADS) represents two fully paid ordinary shares. Translated at the noon buying rate on Tuesday 30 November 1999 as certified by the Federal Reserve Bank of New Yorl A$1=US$0.6371 (1998 A$1=US$0.6280).
(3) Dividend paid during the half year ended 30 November 1999 was unfranked (1998 - fully franked at 36 cents in the dollar).
Financial Data
The financial data upon which this report has been based complies with the requirements of the Corporations Law, with all applicable Australian Accounting Standards and Urgent Issues Group Consensus Views, and gives a true and fair view of the matters disclosed. The results are subject to audit review. The Company has a formally constituted Audit Committee of the Board of Directors.
The Board expects that dividends paid in the next 12 months will not be franked.
This report is made in accordance with a resolution of the Board of Directors.
The statutory BHP Half Year Report - November 1999 will be lodged with the ASX and the Australian Securities and Investments Commission in February 2000. This information will be available to shareholders on request.
RJ Flew
Company Secretary
The Broken
Hill Proprietary
Company Limited
For information contact:
Media Relations:
Mandy Frostick:
(BH) (61 3) 9609 4157
(AH): (61 3) 9687 6651
Mobile: (61) 0419 546 245
Email:frostick.mandy.mj@bhp.com.au
Investor Relations:
Dr Robert Porter:
(BH) (61 3)
9609 3540
Email: porter.robert.r@bhp.com.au
Pierre Hirsch:
(BH) (1 415) 774
2030
Email: hirsch.pierre.pl@bhp.com.au
Supplementary Information - Segment Results
Half yearly comparison - November 1999 with November 1998 (1)(2) | ||||||||||||||||||||
Half year ended 30 November 1999 | ||||||||||||||||||||
Operating Revenue (3) $Million |
Operating Profit | |||||||||||||||||||
Sales |
Other revenue |
Total |
Operating Profit before abnormal items (4) |
Dep'n & amort'n |
Borrowing costs |
Operating profit before abnormal items and income tax(5) |
Income tax excluding abnormal items |
Abnormal items after income tax (6) |
Operating profit including abnormals after tax | |||||||||||
4036 |
199 |
4235 |
Minerals |
1 183 |
( 413) |
- |
770 |
( 237) |
49
|
582 | ||||||||||
3 680 |
31 |
3 711 |
Steel |
475 |
( 210) |
- |
265 |
( 96)
|
63 |
232 | ||||||||||
1 837 |
240 |
2077 |
Petroleum |
939 |
( 314) |
- |
625
|
(215)
|
49
|
459 |
||||||||||
868 |
76 |
944 |
Services |
76 |
18) |
- |
58 |
(18) |
5
|
45 | ||||||||||
- 25 |
25 |
Net unallocated interest |
25 |
- |
( 355) |
( 330) |
78 |
(4)
|
(256) | |||||||||||
(107) |
39 |
(68) |
Group and unallocated items(7) |
167) |
(7) |
- |
( 174) |
64 |
110
|
- | ||||||||||
9527 |
610 |
10 137 |
BHP Group |
2531 |
(962) |
( 355) |
1 214 |
(424) |
272
|
1 062 | ||||||||||
Half year ended 30 November 1998 | ||||||||||||||||||||
Operating Revenue (3) $Million |
Operating Profit | |||||||||||||||||||
Sales |
Other revenue |
Total |
Operating Profit before abnormal items (4) |
Dep'n & amort'n |
Borrowing costs |
Operating profit before abnormal items and income tax(5) |
Income tax excluding abnormal items |
Abnormal items after income tax (6) |
Operating profit including abnormals after tax | |||||||||||
4815 |
267 |
5082 |
Minerals |
1 432 |
(450) |
982 |
(413) |
569 | ||||||||||||
4064 |
48 |
4 112 |
Steel |
558 |
(234) |
324 |
( 120) |
204 | ||||||||||||
1449 |
38 |
1 487 |
Petroleum |
671 |
(343) |
328 |
( 127) |
201 | ||||||||||||
1090 |
182 |
1 272 |
Services |
133 |
( 38) |
-
|
95
|
13) |
82 | |||||||||||
- |
75 |
75 |
Net unallocated interest |
75 |
- |
(390) |
(315) |
83 |
232) | |||||||||||
(379) |
4 |
( 375) |
Group and unallocated items (7) |
( 567) |
( 10) |
- |
(577) |
204 |
(373) | |||||||||||
9954 |
614 |
10568 |
BHP Group |
2302 |
(1075) |
(390) |
837 |
(386) |
451 |
(1) Before outside equity interests.
(2) Comparative figures have been restated to reflect the transfer of internal currency hedging results from Minerals, Steel and Petroleum to Group and unallocated items. The results of internal currency hedging activities eliminate within Group and unallocated items.
(3) Operating revenues do not add to the BHP Group figure due to intersegment transactions.
(4) Result for all Businesses except Net unallocated interest is equivalent to earnings before borrowing costs, income tax expense, depreciation and amortisation.
(5) Result for all Businesses except Net unallocated interest is equivalent to earnings before borrowing costs and income tax expense.
(6) Tax benefit on November 1999 abnormal items: Minerals $49 million, Steel $63 million, Petroleum $49 minion, Services $5 million, Net unallocated interest ($4) million, Group and unallocated items $110 million.
(7) Includes consolidation adjustments and unallocated items.
(8) Following adoption of AASB 1036: Borrowing costs, November 1998 figures have been restated to include ancillary borrowing costs within Net unallocated interest. These costs were previously included in Business results.
Supplementary Information - Segment Results
Quarterly comparison - November 1999 with November 1998 (1)(2) | ||||||||||||||
Quarter ended 30 November 1999 | ||||||||||||||
Operating Revenue(3) $Million |
Operating Profit | |||||||||||||
Sales |
Other revenue |
Total |
Operating profit before abnormal items (4) |
Dep'n & amort'n |
Borrowing costs |
Operating profit before abnormal items and income tax(5) |
Income tax excluding abnormal items |
Abnormal items after income tax (6) |
Operating profit including abnormals after tax | |||||
2037 |
55 |
2092 |
Minerals |
563 |
( 206) |
- |
357 |
(99) |
49 |
307 | ||||
1 872 |
9 |
1 881 |
Steel |
267 |
( 105) |
- |
162
|
( 56) |
63 |
169 | ||||
888 |
29 |
917 |
Petroleum |
518 |
( 155) |
- |
363 |
(123) |
49 |
289 |
||||
437 |
35 |
472 |
Services |
32 |
( 9) |
- |
23 |
( 6)
|
5 |
22 |
||||
- |
4 |
4 |
Net unallocated interest |
4 |
- |
( 187) |
(183) |
45 |
( 4) |
(142) | ||||
(55) |
38 |
(17) |
Group and unallocated items ( 7) |
(60) |
( 3) |
- |
(63) |
26 |
( 2) |
(39) | ||||
4802 |
170 |
4972 |
BHP Group |
1 324 |
(478) |
( 187) |
659 |
(213) |
160 |
606 | ||||
Quarter ended 30 November 1998 | ||||||||||||||
Operating Revenue(3) $Million |
Operating Profit $Million |
|||||||||||||
Sales |
Other revenue |
Total |
Operating profit before abnormal items (4) |
Dep'n & amort'n |
Borrowing costs (8) |
Operating profit before abnormal items and income tax(5) |
Income tax excluding abnormal items |
Abnormal items after income tax (6) |
Operating profit including abnormals after tax | |||||
2331 |
66 |
2 397 |
Minerals |
588 |
(228) |
- |
360 |
152) |
- |
208 | ||||
1 969 |
23 |
1 992 |
Steel |
251 |
( 118) |
- |
133 |
(49) |
- |
84 | ||||
649 |
8 |
657 |
Petroleum |
274 |
( 169) |
- |
105 |
(41) |
- |
64 | ||||
538 |
41 |
579 |
Services |
40 |
(19) |
- |
21 |
( 3) |
- |
18 | ||||
- |
35 |
35 |
Net unallocated interest |
35 |
- |
( 180) |
145) |
20 |
- |
125) | ||||
168) |
- |
168) |
Group and unallocated items (7) |
(244) |
(6) |
- |
(250) |
87 |
- |
(163) | ||||
4792 |
173 |
4965 |
BHP Group |
944 |
(540) |
( 180) |
224 |
138) |
- |
86 |
(1) Before outside equity interests.
(2) Comparative figures have been restated to reflect the transfer of internal currency hedging results from Minerals, Steel, and Petroleum to Group and unallocated items. The results of internal currency hedging activities eliminate within Group and unallocated hems.
(3) Operating revenues do not add to the BHP Group figure due to intersegment transactions.
(4) Result for all Businesses except Net unallocated interest is equivalent to earnings before borrowing costs, income tax expense, depreciation and amortisation.
(5) Result for all Businesses except Net unallocated interest is equivalent to earnings before borrowing costs and income tax expense.
(6) Tax benefit on November 1999 abnormal items: Minerals $49 million, Steel $63 million, Petroleum $49 million, Services $5 million, Net unallocated interest ($4) million, Group and unallocated items ($2) million.
(7) Includes consolidation adjustments and unallocated items.
(8) Following adoption of AASB 1036: Borrowing costs, November 1998 figures have been restated to include ancillary borrowing costs within Net unallocated interest. These costs were previously included in Business results.
Supplementary Information - Segment Results
Quarterly comparison - November 1999 with August 1999 (1) | ||||||||||||||
Quarter ended 30 November 1999 | ||||||||||||||
Operating Revenue(2) $Million |
Operating Profit | |||||||||||||
Sales |
Other revenue |
Total |
Operating profit before abnormal items (3) |
Dep'n & amort'n |
Borrowing costs |
Operating profit before abnormal items and income tax(4) |
Income tax excluding abnormal items |
Abnormal items after income tax (5) |
Operating profit including abnormals after tax | |||||
2037 |
55 |
2092 |
Minerals |
563 |
( 206) |
- |
357 |
(99) |
49 |
307 | ||||
1 872 |
9 |
1 881 |
Steel |
267 |
( 105) |
- |
162
|
( 56) |
63 |
169 | ||||
888 |
29 |
917 |
Petroleum |
518 |
( 155) |
- |
363 |
(123) |
49 |
289 |
||||
437 |
35 |
472 |
Services |
32 |
( 9) |
- |
23 |
( 6)
|
5 |
22 |
||||
- |
4 |
4 |
Net unallocated interest |
4 |
- |
( 187) |
(183) |
45 |
( 4) |
(142) | ||||
(55) |
38 |
(17) |
Group and unallocated items (6) |
(60) |
( 3) |
- |
(63) |
26 |
( 2) |
(39) | ||||
4802 |
170 |
4972 |
BHP Group |
1 324 |
(478) |
( 187) |
659 |
(213) |
160 |
606 | ||||
Quarter ended 31 August 1999 | ||||||||||||||
Operating Revenue(2) $Million |
Operating Profit $Million |
|||||||||||||
Sales |
Other revenue |
Total |
Operating profit before abnormal items (3) |
Dep'n & amort'n |
Borrowing costs |
Operating profit before abnormal items and income tax(4) |
Income tax excluding abnormal items |
Abnormal items after income tax (7) |
Operating profit including abnormals after tax | |||||
1 999 |
144 |
143 |
Minerals |
620 |
(207) |
- |
413 |
(138) |
- |
275 | ||||
1 808 |
22 |
1 830 |
Steel |
208 |
( 105) |
- |
103 |
(40) |
- |
63 | ||||
949 |
211 |
1 160 |
Petroleum |
421 |
( 159) |
- |
262 |
(92) |
- |
170 | ||||
431 |
41 |
472 |
Services |
44 |
(9) |
- |
- 35 |
( 12) |
- |
23 | ||||
- |
21 |
21 |
Net unallocated interest |
21 |
- |
( 168) |
(147) |
33 |
- |
(114) | ||||
(52) |
1 |
(51) |
Group and unallocated items (6) |
(107) |
(4) |
- |
(111) |
38 |
112 |
39 | ||||
4725 |
440 |
5 165 |
BHP Group |
1 207 |
(484)
|
( 168) |
555 |
(211) |
112 |
456 |
(1) Before outside equity interests.
(2) Operating revenues do not add to the BHP Group figure due to intersegment transactions.
(3) Result for all Businesses except Net unallocated interest is equivalent to earnings before borrowing costs, income tax expense, depreciation and amortisation.
(4) Result for all Businesses except Net unallocated interest is equivalent to earnings before borrowing costs and income tax expense.
(5) Tax benefit on November 1999 abnormal items: Minerals $49 million, Steel $63 million, Petroleum $49 million, Services $5 million, Net unflocated interest ($4) million, Group and unallocated items ($2) million.
(6) Includes consolidation adjustments and unallocated items.
(7) Tax benefit on August 1999 abnormal item: $112 million.
Supplementary Information - Business Results
Half year ended 30 November 1999 | ||||||||||||||||||
|
Sales (1) revenue |
Operating (2) profit before abnormal items |
Depreciation & amortisation
|
Net assets (3) |
Capital& investment expenditure(4)
|
Exploration
| ||||||||||||
|
|
|
|
|
Gross (5)
|
Charged to profit (6) |
||||||||||||
Minerals |
||||||||||||||||||
Steelmaking and Energy Materials |
||||||||||||||||||
Iron Ore |
688 |
340 |
68 |
1991 |
11 |
|||||||||||||
Coal |
1332 |
398 |
140 |
1 870 |
41 |
|||||||||||||
Hot Briquetted Iron |
36 |
(101) |
6 |
1600 |
111 |
|||||||||||||
Manganese (7) |
1 |
2 |
- |
49 |
- |
|||||||||||||
Intra-divisional adjustment |
(16) |
(5) |
( 1) |
|||||||||||||||
2041 |
634 |
214 |
5 509 |
163 |
||||||||||||||
Non Ferrous & Industrial Materials |
||||||||||||||||||
South America Copper |
799 |
338 |
98 |
2496 |
21 |
|||||||||||||
Pacific Copper |
307 |
55 |
50 |
671 |
- |
|||||||||||||
EKATI (TM) diamonds |
174 |
135 |
20 |
482 |
1 |
|||||||||||||
Cannington silver lead-zinc |
211 |
67 |
22 |
527 |
4 |
|||||||||||||
Other Businesses (8) |
502 |
30 |
4 |
(625) |
20 |
|||||||||||||
Intra-divisional adjustment |
- |
- |
1 |
|||||||||||||||
1 993 |
625 |
194 |
3 552 |
46 |
||||||||||||||
Minerals Development |
4 |
( 32) |
5 |
280 |
2 |
|||||||||||||
Divisional Activities |
(2) |
(44) |
- |
(4) |
(3) |
|||||||||||||
4036 |
1 183 |
413 |
9 337 |
208 |
30 |
25 |
||||||||||||
Steel |
||||||||||||||||||
Flat Products |
1 117 |
145 |
80 |
1 975 |
24 |
|||||||||||||
Coated Products |
1 695 |
217 |
63 |
2 140 |
10 |
|||||||||||||
Long Products |
851 |
50 |
39 |
1 496 |
19 |
|||||||||||||
Building & Industrial Products |
1 166 |
86 |
27 |
1 138 |
7 |
|||||||||||||
Intra-divisional adjustment |
(1 149) |
(5) |
(62) |
|||||||||||||||
Divisional activities |
- |
18) |
1 |
(5) |
- |
|||||||||||||
3 680 |
475 |
210 |
6682 |
60 |
||||||||||||||
Petroleum (9) |
||||||||||||||||||
Bass Strait |
786 |
457 |
92 |
866 |
96 |
|||||||||||||
North West Shelf |
360 |
278 |
42 |
1 216 |
31 |
|||||||||||||
Liverpool Bay |
133 |
127 |
76 |
445 |
11 |
|||||||||||||
Other Businesses |
500 |
200 |
103 |
1 482 |
94 |
|||||||||||||
Marketing activities |
524 |
(2) |
1 |
15 |
- |
|||||||||||||
Intra-divisional adjustment |
(342) |
- |
||||||||||||||||
Divisional activities |
( 124) |
121) |
- |
7 |
- |
100 |
79 |
|||||||||||
1 837 |
939 |
314 |
4 031 |
232 |
100 |
79 |
||||||||||||
Services |
868 |
76 |
18 |
121 |
14 |
| ||||||||||||
Net Unallocated Interest |
- |
25 |
- |
(9679) |
- |
|||||||||||||
Group and unallocated items |
107) |
167) |
7 |
22 |
14 |
|||||||||||||
BHP Group |
9 527 |
2 531 |
962 |
10 514 |
528 |
130 |
104 |
(1) Sales revenues do not add to the BHP Group figure due to intersegment transactions.
(2) Result for all Businesses except Net unallocated interest is equivalent to earnings before borrowing costs, income tax expense, depreciations and amortisation.
(3) Provisional balances.
(4) Excludes capitalised interest and capitalised exploration.
(5) Includes capitalised exploration: Minerals $5 million and Petroleum $32 million.
(6) Includes $11 million Petroleum exploration expenditure previously intersegment transactions. capitalised, now written off.
(7) Principal manganese assets were sold in December 1998.
(8) Includes North America Copper mining and smelting operations which ceased during the August quarter, Beenup mineral sands operation which closed in April 1999 and Hartley platinum mine where operations have been suspended pending conditional sale.
(9) Petroleum sales revenue includes: Crude oil $1 183 rnillion, Natural gas $172 million, LNG $161 million, LPG $128 million and Other $193 rnillion.
Supplementary Information - Business Results
Half year ended 30 November 1998 (1) | |||||||
|
Sales revenue (2) |
Operating profit before abnormal items (3)
|
Depreciation & amortisation |
Net assets |
Capital & investment expenditure (4) |
Exploration(before tax) | |
|
|
Gross (5) |
Charged to profit |
||||
Minerals |
|||||||
Steelmaking and Energy Materials |
|||||||
Iron Ore |
903 |
490 |
72 |
1709 |
42 |
||
Coal |
1 689 |
582 |
143 |
1989 |
57 |
||
Hot Briquetted Iron (6) |
- |
25 |
1 |
1912 |
325 |
||
Manganese (7) |
238 |
66 |
10 |
331 |
2 |
||
Intra-divisional adjustment |
- |
- |
|||||
2 830 |
1 163 |
226 |
5941 |
426 |
|||
Non Ferrous & Industrial Materials |
|||||||
South America Copper |
761 |
256 |
79 |
2520 |
229 |
||
Pacific Copper |
378 |
115 |
54 |
773 |
15 |
||
North America Copper (8) |
645 |
33 |
56 |
1 143 |
58 |
||
EKATI (TM) diamonds (9) |
- |
7 |
- |
572 |
42 |
||
Cannington silver-lead -zinc |
168 |
32 |
15 |
549 |
9 |
||
OtherBusinesses (10) |
37 |
(55) |
13 |
474 |
10 |
||
Intra-divisional adjustment |
(17) |
10 |
(5) |
||||
1 972 |
398 |
217 |
6026 |
363 |
|||
Minerals Development |
20 |
(87) |
7 |
324 |
4 |
||
Divisional Activities |
(7) |
(42) |
- |
73 |
2 |
||
4 815 |
1 432 |
450 |
12 364 |
795 |
115 |
97 |
|
Steel |
|||||||
Flat Products |
1 198 |
155 |
79 |
2274 |
81 |
||
Coated Products |
1 744 |
206 |
72 |
2399 |
32 |
||
Long Products |
1 022 |
106 |
52 |
1 378 |
56 |
||
Building & Industrial Products |
1 325 |
103 |
30 |
1 361 |
19 |
||
Intra-divisional adjustment |
(1 225) |
10 |
(67) |
||||
Divisional activities |
- |
(22) |
1 |
58 |
- |
||
4 064 |
558 |
234 |
7 403 |
188 |
|||
Petroleum (11) |
|||||||
Bass Strait |
441 |
235 |
67 |
812 |
127 |
||
North West Shelf |
307 |
226 |
48 |
1 223 |
47 |
||
Liverpool Bay |
180 |
126 |
92 |
1 387 |
45 |
||
Other Businesses |
415 |
114 |
135 |
2035 |
189 |
||
Marketing activities |
144 |
14 |
- |
||||
Intra-divisional adjustment |
(41) |
||||||
Divisional activities |
3 |
19) |
- |
31 |
- |
140 |
79 |
1 449 |
671 |
343 |
5502 |
408 |
140 |
79 |
|
Services |
1 090 |
133 |
38 |
497 |
10 |
- |
- |
Net Unallocated Interest |
- |
75 |
- |
(13 064) |
- |
- |
- |
Group and unallocated items |
(379) |
(567) |
10 |
38 |
- |
- |
- |
BHP Group |
9954 |
2302 |
1 075 |
12 740 |
1401 |
255 |
176 |
(1) These figures have been restated to reflect the transfer of intemal currency hedging results from Minerals, Steel and Petroleum to Group and unallocated items. The results of internal currency hedging activities eliminate within Group and unallocated items.
(2) Sales revenues do not add to the BHP Group figure due to intersegment transactions.
(3) Result for all Businesses except Net unallocated interest is equivalent to earnings before borrowing costs, income tax expense, depreciation and amortisation.
(4) Excludes capitalised interest and capitalised exploration.
(5) Includes capitalised exploration: Minerals $18 million and Petroleum $61 million.
(6) Includes profit on sale of Karratha to Port Hedland natural gas pipeline.
(7) Principal manganese assets were sold in December 1998.
(8) North America Coppern-Lining and smelting operations ceased during the August 1999 quarter.
(9) Production at EKATI (TM) diamond mine commenced in October 1998.
(10) Includes Beenup mineral sands operation, which was closed in April 1999, and Hartley Platinum mine where operations have been suspended pending conditional sale.
(11) Petroleum sales revenue includes: Crude oil $729 million, Natural gas $269mifflon, LNG$167 million, LPG$87 million and Other $197 million.
-----END PRIVACY-ENHANCED MESSAGE-----