BHP Billiton books record production in 1H10

The mining conglomerate's interim results were helped by demand from China and restocking in the developed world

Julia Newbould & Holly Cook, 20 January, 2010 | 12:16PM
Facebook Twitter LinkedIn

BHP Billiton's half-year production records for petroleum, iron ore, nickel and zinc were helped by the strong recovery across the commodity suite driven by demand from China and restocking in the developed world.

"While not storming home quite as strongly as Rio Tinto, BHP finished the first half in marginally better production shape than expected," Morningstar senior equities analyst Mark Taylor said. (Read our reaction to Rio's quarterly results here.)

"Very strong performances from the petroleum and nickel divisions more than offset weaker-than-anticipated copper and alumina output. Iron ore, aluminium and coking coal divisions also performed slightly better than expected," he added.

BHP remained predictably cautious as it reported interim results in Australia on Wednesday morning, flagging the potential for volatility in commodity prices in the short term. Uncertainties stem from the expected withdrawal of government stimulus measures both globally and in China where steps are being taken to control loan growth.

But Morningstar remains optimistic about the longer-term outlook thanks to ongoing urbanisation in China and recovering first world economies, Taylor said.

Read our long-term analysis of BHP Billiton here.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

 

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures