Higher commodity prices yesterday helped global mining giant BHP Billiton Ltd report a first-half net profit of US$2.02 billion, but the result was weighed down by a hefty charge from US tax reforms.
The result for the six months to Dec. 31 last year was 37 percent lower than the US$3.2 billion recorded in the previous corresponding period.
BHP last week announced that it would recognize a US$1.8 billion charge from US tax reforms, although the miner said the lower corporate tax rate would have a positive effect on its US profits in the long term.
“Higher commodity prices and a solid operating performance delivered free cash flow of US$4.9 billion,” BHP chief executive Andrew Mackenzie said in a statement. “We used this cash to further reduce net debt and increase returns to shareholders through higher dividends... We remain firm in our resolve to maximize cash flow, maintain discipline and increase shareholder value and returns.”
Underlying profit, a measure preferred by the world’s largest miner, was US$4.05 billion, a 25 percent jump from the prior period, but below analysts’ expectations.
BHP declared a US$0.55 dividend per share, up from US$0.40 previously.
“It’s not a good result,” Fat Prophets resources analyst David Lennox told reporters, adding that BHP had lost about US$800 million in cost savings in its operations for the period.
“I believe where the market has got caught is their costs across two of their divisions — petroleum and copper — are higher than the market would have expected,” Lennox said.
“The market is so used to BHP saving on its cost structures that a US$800 million turnaround is something that wasn’t expected,” he added.
The Anglo-Australian firm knocked back a renewed demand from New York-based Elliott Management Corp, a significant shareholder, for it to dissolve its dual-listed structure.
Elliott early this month said that BHP would reap US$22 billion in value for shareholders if it restructures into one Australian entity and scraps its dual-listing.
However, the miner said in its profit report that the “costs and risks of collapsing the DLC [dual-listed company] outweigh the potential benefits.”
“We have considered unification of the DLC structure a number of times over the past years and will keep it under review,” BHP added.
The company recorded a charge of US$210 million from the fatal Samarco mine collapse in Brazil in 2015, a tragedy that left 19 people dead in one of the South American nation’s worst environmental disasters.
It said “significant progress” was being made on social and environmental recovery programs after the dam failure at Samarco, which is co-owned with Brazil’s Vale SA.
A plan announced in August last year to sell BHP’s US shale assets was progressing, the miner added, with initial bids expected to be received in the June quarter.
BHP spent US$20 billion in 2011 on US shale oil and gas assets, but the sector later experienced a fall in prices, hammering profits and prompting the company to announce plans to exit the business.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day
Thousands of parents in Singapore are furious after a Cordlife Group Ltd (康盛人生集團), a major operator of cord blood banks in Asia, irreparably damaged their children’s samples through improper handling, with some now pursuing legal action. The ongoing case, one of the worst to hit the largely untested industry, has renewed concerns over companies marketing themselves to anxious parents with mostly unproven assurances. This has implications across the region, given Cordlife’s operations in Hong Kong, Macau, Indonesia, the Philippines and India. The parents paid for years to have their infants’ cord blood stored, with the understanding that the stem cells they contained