PRESS RELEASE

BHP results for the year ended 30 June 2018

By
Tuesday, August 21, 2018

Press Release by BHP

Following BHP's sale of the Onshore US assets, as announced on 27 July 2018, the contribution of these assets has been presented in this report as discontinued operations and related assets and liabilities reclassified as held for sale.

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Safety and sustainability: Our highest priority

- Tragically, we had two fatalities during the year, one at our Permian operations and one at Goonyella Riverside.

- Samarco Governance Agreement settles the BRL20 billion Civil Claim, enhances community participation in

Renova Foundation programs and establishes a process to progress settlement of the BRL155 billion Civil Claim.

Maximise cash flow: US$12.5 billion free cash flow from higher prices and strong operating performance

- Attributable profit of US$3.7 billion, Underlying attributable profit of US$8.9 billion up 33%, supported by 8% Group copper equivalent volume growth.

- Underlying EBITDA(ii) of US$23.2 billion at a margin(iii) of 55% for continuing operations.

- Net operating cash flow of US$18.5 billion and free cash flow(i) of US$12.5 billion reflect higher prices and

volumes, with annual production records at nine operations across iron ore, coal, copper and petroleum.

- Productivity up US$374 million in the second half to negative US$96 million from continuing operations for the full year.

- Productivity gains of ~US$1 billion now expected for the 2019 financial year, with strong momentum to be carried into the 2020 financial year.

Capital discipline: Net debt in the lower half of target range and investment plans on track

- Net debt(i) of US$10.9 billion, down US$15 billion in two years, reflects capital discipline and strong free cash flow.

- Capital and exploration expenditure(v) within guidance at US$6.8 billion. Future guidance unchanged at below

US$8 billion per annum for the 2019 and 2020 financial years.

Value and returns: Record final dividend of 63 US cps, ROCE up to 14.4%, Onshore US exit announced

- The Board has determined to pay a record final dividend of 63.0 US cents per share which includes an additional amount of 17 US cents per share above the 50% minimum payout policy (equivalent to US$0.9 billion).

- Underlying return on capital employed(iii) of 14.4% (after tax) with further improvement expected.

- Onshore US sale announced for US$10.8 billion and we expect to return the net proceeds to shareholders.

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