22nd Oct 2015 11:09
MELBOURNE (Alliance News) - Speaking at BHP Billiton PLC's AGM, Chief Executive Andrew Mackenzie said it has been a challenging time for the company and for shareholders since last financial year. Operationally, demand growth slowed and supply grew. This lowered commodity prices across the board.
"In the 2015 financial year we delivered productivity gains of USD4.1 billion - two years ahead of target. Over the last three years, we've achieved productivity gains of over USD10 billion and grown production by 34%. From their peak, our average unit costs have fallen by more than 30% and we've reduced annual capital and exploration costs by 24% to USD11 billion. In this financial year we will reduce this further to USD8.5 billion."
In 2015, the company expects Western Australia Iron Ore to drop unit costs to USD15 a tonne (before freight and royalties) and increase volumes by 7%. Queensland Coal will reduce unit cash costs to USD61 a tonne, despite lower volumes as the Crinum mine is exhausted.
Chairman, Jac Nasser, said the company's balance sheet is strong and BHP remains committed to a solid A credit rating.
"In line with our progressive dividend policy, we lifted the full-year dividend by two percent in US dollar terms to 124 US cents per share, meaning that in the last 12 months we have returned USD6.6 billion to shareholders."
Copyright RTT News/dpa-AFX
Related Shares:
BHP Billiton PLC