BHP's Disappointing Half-Year - Analyst Blog
21 Febrero 2013 - 6:50AM
Zacks
Australia based diversified
minerals company, BHP Billiton Ltd. (BHP) reported
its financial results for the first half of fiscal 2013, ended Dec
31, 2012. Earnings per share stood at 79 cents, down 58.0% from
$1.88 in the year-ago period. Lower selling prices and cost
inflation hurt earnings in the quarter.
Revenue
Revenues for the reported period
dropped 14.1% year over year to $32.2 billion from $37.5 billion as
a result of challenging global industry as well as lower prices of
commodities. Underlying EBIT was recorded at $9.8 billion, down
38.3% year over year, as a result of lower commodity prices and
inflation.
Balance Sheet
Cash and cash equivalents, at the
end of the period, were recorded at $5.1 billion, up from $4.8
billion in the preceding half year. Net debt, comprising interest
bearing liabilities less cash, was $30.4 billion, up from $23.6
billion as of June 30, 2012.
Cash Flow
Net operating cash flows decreased
47.9% to $6.4 billion from $12.3 billion in the corresponding
period last year. Capital and exploration expenditure totaled $12.2
billion for the half year ended Dec 31, 2012. Expenditure on major
growth projects came in at $9.7 billion, which includes $3.4
billion on Petroleum projects and $6.3 billion on Minerals
projects.
BHP Billiton announced an interim
dividend of 57 cents to be paid on Mar 28, 2013, to shareholders on
record on Mar 8, 2013. Moreover, in line with the company’s
strategy to trim its portfolio, BHP divested around $4.3 billion
assets in the reported half year, which are either complete or
awaiting closures.
Outlook
As on the closure of half year
2013, BHP had roughly 20 projects in progress, which are expected
to yield revenue by 2015. BHP expects the economy to start reviving
in the coming quarters; thereby boosting demand and prices.
However, low cost supply by other players in many markets is more
likely to hamper the rise in prices.
BHP currently holds a Zacks Rank #3
(Hold). Other stocks worth a look at in the industry are
Denison Mines Corp. (DNN), Xstrata
Plc. (XSRAY) and Aluminum Corporation Of
China (ACH); each carrying a Zacks Rank #2 (Buy).
ALUMINUM CP-ADR (ACH): Free Stock Analysis Report
BHP BILLITN LTD (BHP): Free Stock Analysis Report
DENISON MINES (DNN): Free Stock Analysis Report
(XSRAY): ETF Research Reports
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