Global recovery boosts profits for BHP Billiton
PROFITS soared at mining giant BHP Billiton in the six months to the end of 2013, the group reported last night, as the economic recovery boosted demand.
Net profit for the half-year jumped 83 per cent to $8.1bn (£4.8bn) as rising volumes and falling costs combined to increase profitability.
Revenues increased 5.7 per cent while expenses excluding finance costs were slashed 15 per cent to $22.7bn.
Iron ore production hit a record high of 108m tonnes while coal output also hit a new high of 68m tonnes, both in Australia.
And the group remains hopeful that the economic picture will continue to improve, boosting its fortunes for the rest of the year.
“In the developed world, Europe experienced a period of relative stability while the United States’ economy accelerated, with continued improvement in private sector balance sheets a key supporting factor,” BHP reported.
“The balance of risk to global growth is skewed to the upside, particularly given the broad based alignment of macroeconomic indicators in the major developed economies.”
BHP’s Australian shares opened up 1.56 per cent.