By David Hodari 
 

BHP Billiton, one of the world's largest mining companies, released its results for the financial year ending June 30 late Monday. The company's report detailed a 33% rise in annual underlying profit, although the miner signaled rising apprehension on the short-term outlook for the commodities market as trade tensions between the U.S. and China keep simmering. Here are some other remarks from the report.

 

On the macroeconomic outlook:

 

"World economic growth strengthened to 3.8 percent in the 2017 calendar year, with a notable rebound in global trade. A similar outcome is expected in the 2018 calendar year, although downside risks have increased due to rising trade protectionism."

 

On China's economic outlook:

 

"We continue to expect China's economic growth to slow modestly in the 2018 calendar year. The official GDP target of around six-and-a-half percent is likely to be achieved, assuming the current trends of slowing activity in the housing and automobile markets, and resilience in infrastructure and machinery, continue. We expect China's policymakers to continue to seek a balance between the pursuit of reform and maintenance of macroeconomic and financial stability. Over the longer term, China's economic growth rate is expected to decelerate as the working-age population falls and the capital stock matures."

 

On the U.S. economic outlook:

 

"Near-term prospects for the U.S. economy are sound, with cyclical fundamentals solid. However, we expect the increase in protectionism to weigh on consumer purchasing power and international competitiveness."

 

On the oil market outlook:

 

"Crude oil prices trended higher during the 2018 financial year. Larger than agreed production cuts by the 'Vienna Group' and strong demand growth both contributed to a substantial reduction in the inventory overhang. A roughly balanced market is forecast for the 2018 calendar year. The outlook remains positive, underpinned by rising demand from the developing world and natural field decline."

 

On the copper market outlook:

 

"Copper prices rose over the 2018 financial year, with gains in the first half sustained for most of the second half. Broad-based demand strength and the threat of supply disruption both contributed to the improvement in prices. The rise in trade tensions pushed copper prices down early in the 2019 financial year. Grade decline, increased input costs, water constraints and a scarcity of high-quality future development opportunities will require attractive prices to secure sufficient investment to balance the market, with new mine supply required in the early part of the next decade."

 

On South American copper operations:

 

"During the June 2018 quarter, BHP successfully completed the negotiations with Spence Union No1 (operators and maintenance) and Cerro Colorado Union No2 [supervisors and staff] with the new agreements effective from 1 June 2018 and 1 July 2018 respectively, each valid for 36 months. On 17 August 2018, Escondida successfully completed negotiations with Union No1 and signed a new collective agreement, effective for 36 months from 1 August 2018. On 19 June 2018, BHP entered into an agreement to sell Cerro Colorado to EMR Capital(x). The transaction is expected to close during the December 2018 quarter, subject to financing and customary closing conditions."

 

Write to David Hodari at david.hodari@wsj.com

 

(END) Dow Jones Newswires

August 21, 2018 07:41 ET (11:41 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
BHP (ASX:BHP)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024 Haga Click aquí para más Gráficas BHP.
BHP (ASX:BHP)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024 Haga Click aquí para más Gráficas BHP.