12:00PM New York - BHP Billiton reported first-half attributable profit declined 2.8% to 6 billion from 6.1 billion a year ago hurt by increased costs.[/R]

Half-Year Earnings Review

BHP Billiton reported first half revenues increased 15.5% to $25 billion from $22 billion a year ago on strong metal prices and cost containment measures adopted by the company.

In the first half, profit slumped 2.8% to $6 billion from $6.1 billion a year ago as costs increased 1.9% from the previous year.

Earnings per share rose 2.8% to 106.8 cents from 103.9 cents last year on a share buyback scheme launched by the company.

BHP’s interim dividend rose 45% to 29 cents from 20 cents.

Revenue

In the six months ended December 31st, petroleum revenues rose 27.5% to $3.7 billion from $2.9 billion as production increased to 60.54 million barrels, which was 5% higher than the year-ago results.

Oil prices also increased to $81.20 per barrel during the period.

Half-year aluminum revenues slumped 3% to $2.7 billion from $2.8 billion a year ago.

Furthermore, iron ore sales increased 30.2% to $3.5 billion from $2.7 billion in the year-ago period on increased prices, higher sales volumes and highly priced spot sales.

Energy coal revenues jumped 25.2% to $2.9 billion.

Outlook

BHP forecasted that demand and prices of metals will remain high despite the turbulence on the financial markets driven mainly by a strong appetite from China and India.
Bulk commodity contract prices are expected to remain strong going forward.