MELBOURNE Feb 18 BHP Billiton
reported a 31 percent rise in first-half profit on Tuesday and
signalled it would consider a dividend hike in August, as it
cuts debt towards levels that may prompt a share buyback.
After achieving annualised cost savings of $4.9 billion,
slashing capital spending and reducing debt, the world's biggest
miner showed confidence in its surging cashflow, although it did
not come up with a dividend surprise like rival Rio Tinto
"We will consider the trajectory of our progressive base
dividend at the end of the 2014 financial year," BHP said in its
It expected to generate strong free cash flow which would
help it pare net debt to around $25 billion by June 2014, a
target at which Chief Executive Andrew Mackenzie has said the
company would be willing to consider returning capital to
"We are well placed to extend our strong track record of
capital management," the company said.
Big miners have been shelving projects, cutting costs and
selling assets over the past 18 months to satisfy shareholders
wanting a bigger share of spoils from the mining boom.
BHP said commodity demand should be supported at "more
moderate rates of growth" until mid-year as the global economy
is expected to strengthen.
Net debt fell to $27.1 billion, down $422 million from June
Underlying attributable profit rose to $7.76 billion for the
six months to December, up from $5.94 billion a year earlier.
Analysts had been expecting a profit of $6.925 billion on the
"The dividend was slightly below what I was expecting, which
was around 60 cents," Morningstar analyst Mark Taylor said on a
first look at the results.
Profit from iron ore, its biggest business, rose 60 percent
on the back of mine expansions, while petroleum earnings fell 16
percent, and copper rose just 0.4 percent.
BHP raised its interim dividend by 3.5 percent to $0.59 a
share, slightly below consensus but in line with its normal
practice of paying an interim dividend at the same level as the
final dividend from the year before.
BHP's Australian shares closed at A$38.02 on Monday ahead of
the half-year results, down 1.7 percent over the past year and
underperforming a 6.3 percent rise in the broader market.