Sharechat Logo

BHP Billiton

By Dan Stratful

Monday 13th February 2012

Text too small?

BHP Billiton (ASX: BHP) has reported its first half result and analysts retain their buy recommendation on the stock despite a 5.5% drop in profits and the result coming in slightly below analyst expectations.

For the six months to 31 December 2011 BHP reported revenue up 9.7% to US$37.5 billion and a net profit of US$9.9 billion, down 5.5% on the previous corresponding period. Underlying EBITDA was up 8% to US$18.7 billion.

BHP completed the acquisition of Petrohawk Energy Corporation during the first half which resulted in gearing increasing to 25%. Chief Executive Marius Kloppers reported that the Miner was on the look out for further acquisitions and further consolidation in the mining sector is expected in the years ahead.
 
Record Western Australia Iron Ore production and stronger bulk commodity and petroleum product prices were the major catalysts for BHP’s 6% increase in underlying first half EBIT.

Prices for many of BHP Billiton’s products declined during the latter part of the 2011 calendar year as concerns surrounding broader European liquidity saw a deterioration in commodities demand. BHP expects volatility in commodity markets to persist as the European sovereign debt crisis and general weakness in the manufacturing and construction sectors across key markets are expected to weigh on customer behavior and sentiment.

The merger proposal between Glencore and Xstrata has been positive for mining stocks in recent days as the market speculates that further M&A activity will occur. Fortesque Metal’s share price has been buoyant after a mystery buyer snapped up its stock last week.

Status: GROWTH BUY 

BHP’s shares today traded at $36.45

For portfolio, sharemarket and fixed income enquires contact:
Dan Stratful at Investment Research Group (IRG)
Authorised Financial Adviser (AFA)
0800 437 8489, 09 304 0232, dan.stratful@irg.co.nz
**A disclosure statement is available, on request and free of charge.


Disclaimer
In accordance with the Financial Advisers Act 2008 (“the Act”) Sharechat is “Class Advice” and any advice or recommendations contained on this webpage is not “Personalised Advice” as defined by the Act. This means Sharechat does not take into account an investor’s particular financial position, financial needs, financial goals, risk profile or asset allocation. Investor’s who require “Personalised Advice” should contact an Authorised Financial Adviser (AFA).



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report