BHP Billiton plc (LON:BLT) has reported a 25% jump in underlying interim profit helped by robust metal prices, and said its focus remains on cutting debt and boosting shareholder returns.
The world’s biggest miner reported underlying profit of US$4.05bn for the half-year to December 31, up from US$3.24bn a year earlier but below the consensus forecast of US$4.30bn.
READ: BHP Billiton takes US$1.8bn hit from Donald Trump's tax reform
The FTSE 100-listed firm’s first-half net profit fell to US$2.02bn, including a previously flagged US$1.8bn exceptional charge arising from a change in US corporate taxes.
The group’s half-year revenue rose by 16% to US$21.78bn, with copper revenues up nearly 52%, helped by stronger prices and higher production from the Escondida mine in Chile.
The miner maintained its guidance for production of 275mln to 280mln tonnes of iron ore in the fiscal year to June 30.
BHP Billiton’s chief executive Andrew Mackenzie said: “Higher commodity prices and a solid operating performance delivered free cash flow of US$4.9bn.
“We used this cash to further reduce net debt and increase returns to shareholders through higher dividends.”
Dividend hiked by 38%, net debt down 23%
The miner declared an interim dividend of US$0.55 per share, up nearly 38% from last year.
It cut its net debt by 23% to US$15.4bn during the period, and said it was on track to reach its US$10bn to US$15bn target before the year-end.
BHP reiterated its proposal to sell its onshore US shale assets, which it has on its books at US$14bn and said it was progressing to plan with initial bids expected in the June quarter.
The group also brushed off fresh calls by activist investor and shareholder Elliott Advisors to change its dual listing structure in the UK and Australia, saying that the costs and risks of such a change outweighed potential benefits.