Australia based diversified minerals company, BHP
Billiton Ltd. ( BHP ) reported its
financial results for the first half of fiscal 2013, ended Dec 31,
2012. Earnings per share stood at 79 cents, down 58.0% from $1.88
in the year-ago period. Lower selling prices and cost inflation
hurt earnings in the quarter.
Revenues for the reported period dropped 14.1% year over year to
$32.2 billion from $37.5 billion as a result of challenging global
industry as well as lower prices of commodities. Underlying EBIT
was recorded at $9.8 billion, down 38.3% year over year, as a
result of lower commodity prices and inflation.
Cash and cash equivalents, at the end of the period, were
recorded at $5.1 billion, up from $4.8 billion in the preceding
half year. Net debt, comprising interest bearing liabilities less
cash, was $30.4 billion, up from $23.6 billion as of June 30,
Net operating cash flows decreased 47.9% to $6.4 billion from
$12.3 billion in the corresponding period last year. Capital and
exploration expenditure totaled $12.2 billion for the half year
ended Dec 31, 2012. Expenditure on major growth projects came in at
$9.7 billion, which includes $3.4 billion on Petroleum projects and
$6.3 billion on Minerals projects.
BHP Billiton announced an interim dividend of 57 cents to be
paid on Mar 28, 2013, to shareholders on record on Mar 8, 2013.
Moreover, in line with the company's strategy to trim its
portfolio, BHP divested around $4.3 billion assets in the reported
half year, which are either complete or awaiting closures.
As on the closure of half year 2013, BHP had roughly 20 projects
in progress, which are expected to yield revenue by 2015. BHP
expects the economy to start reviving in the coming quarters;
thereby boosting demand and prices. However, low cost supply by
other players in many markets is more likely to hamper the rise in
BHP currently holds a Zacks Rank #3 (Hold). Other stocks worth a
look at in the industry are Denison Mines Corp. (
Xstrata Plc. ( XSRAY ) and
Aluminum Corporation Of China ( ACH ); each carrying a
Zacks Rank #2 (Buy).ALUMINUM CP-ADR (ACH): Free Stock Analysis
ReportBHP BILLITN LTD (BHP): Free Stock Analysis
ReportDENISON MINES (DNN): Free Stock Analysis Report(XSRAY): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment