BHP - Bumper Result in Line With Market Expectations

Submitted by Craig Strzelecki on 15 February, 2006 - 15:46

Shares in BHP Billiton (BHP) have surged over 3% in morning trading after the world’s largest miner announced a record: BHP this morning announced a bumper interim profit - the biggest interim profit in Australian corporate history at $US4.4 billion ($5.9 billion). BHP also announced that it will return US$2 billion back to shareholders in the mext 18 months. UBS has a BUY 2 recommendation on BHP as does Macquarie Research Equities (MRE) was an Outperform rating with a 12 month price target of $26.23. MRE warns that further digestion of the BHP results may disappoint a few investors at the operating level - but MRE reckons that the strength and duration of the current cycle remain unchanged.

  • BHP says that immediate outlook for global economy promising - strong imbalance in world demand and supply
  • BHP confident in demand outlook for next 18-24 months (higher than expected prices)
  • Interim net profit up 47.8 per cent - inline with market expectations
  • Revenues was $US18.2 billion ($A24.7 billion), up 19.5 per cent
  • BHP completed a AUD$9.2 billion acquisition of WMC Resources - cash flow has exceeded expectations
  • BHP shares takes up 10 per cent of the S&P (Standard and Poors) ASX 200 index and has risen in price by more than 30 per cent