BHP Billiton nets record $17.8bn profit

BHP Billiton, the world's largest mining company, has reported a record annual profit and says it expects demand for commodities to remain strong. Net profit for the 12 months ended June 30 climbed 14.7 per cent to $US15.39 billion ($17.8 billion), from $US13.416 billion in the previous year. The result was in line with analysts' forecasts and underpinned by higher production and prices for oil, copper, iron ore, coal and manganese. Underlying profit, or earnings before interest and tax (EBIT), was $US24.28 billion ($28.09 billion), up 21 per cent. BHP Billiton is reaping the rewards from the rapid urbanisation of China and other developing nations that has been driving up demand for commodities and their prices for the past seven years. Revenue for the 2007/08 financial year climbed 25.3 per cent higher to $US59.47 billion ($68.79 billion). BHP Billiton declared a final dividend of US 41 cents per share, taking the total for the year to 70 cents, up 48.9 per cent over the previous year. BHP Billiton's petroleum division, the key differentiator between it and takeover target Rio Tinto Ltd, was the second biggest earner for the group. Its underlying EBIT grew 82.1 per cent to $US5.489 billion ($6.35 billion) on the back of record oil prices and higher production. The company's base metals division was the biggest earner and delivered EBIT growth of 16.2 per cent to $US7.989 billion ($A9.24 billion), after record annual copper output and stronger prices. Underlying earnings from iron ore climbed 69.8 per cent to $US4.63 billion ($5.36 billion), while BHP Billiton's manganese business posted a 549.8 per cent increase to $US1.64 billion ($1.9 billion). BHP Billiton said demand for its commodities is expected to "remain strong" over the longer term, even though it sees global economic growth slowing in the short term. Supply side pressures "remain high" so commodity prices should to remain "high relative to historical levels" in the short term. --NEWS.COM.AU