• 5 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 9 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 15 hours Conflicting News Spurs Doubt On Aramco IPO
  • 16 hours Exxon Starts Production At New Refinery In Texas
  • 17 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 1 day Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 1 day Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
  • 7 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 7 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 7 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 7 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 8 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 8 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 8 days Chinese Teapots Create $5B JV To Compete With State Firms
Goldman Sachs: Inventory Drawdowns Will Not Continue

Goldman Sachs: Inventory Drawdowns Will Not Continue

Goldman Sachs has reported that…

Half A Million Bpd At Risk From Geopolitical Firestorm

Half A Million Bpd At Risk From Geopolitical Firestorm

Geopolitical tensions are once again…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

The World’s Biggest Miner Just Posted Its Worst-Ever Loss

Mining

BHP Billiton (NYSE:BHP) reported on Tuesday a massive loss of US$6.385 billion for the fiscal year ended June 30, after multi-billion impairments on U.S. shale assets and a burst dam in Brazil made it swing to its worst loss on record from the US$ 1.91-billion profit for the previous financial year.

BHP—the world’s biggest miner by market capitalization—recognized an impairment charge of US$4.9 billion against the value of its onshore U.S. assets, reflecting altered price assumptions amid high volatility and much lower prices in the gas and oil industry.

The miner was also hit by a US$2.2-billion net charge by the Samarco dam failure in which a joint venture of BHP suffered Brazil’s worst mining disaster when the dam burst and killed 19 people and released billions of gallons of mining waste into the valley.

The commodity price crash added to BHP’s headwinds in the period mid-2015 through end-June 2016, and the miner slashed dividends by 76 percent to US$0.30 per share.

Upon announcing its half-year results in February, BHP said that it was bracing itself for a prolonged period of lower commodity prices, and therefore adopted a dividend policy to link dividend payments to underlying profits in order to ensure financial flexibility and protect the balance sheet.

Full-year underlying profit—excluding the one-off impairment charges—plunged 81 percent to US$1.215 billion. Still, it beat the US$1.04-billion average estimate of 19 analysts polled by Bloomberg.

Capital and exploration expenditure dropped 42 percent to US$6.4 billion, with further reduction to US$5 billion expected in the 2017 financial year.

Looking ahead, BHP expects global growth until the end of 2016 to “remain modest and subject to downside risks, including the uncertain economic consequences of ‘Brexit”.

On a positive note, based on current spot prices and a forecast reduction in net debt, BHP expects to double free cash flow to more than US$7 billion next year, from the US$3.4 billion free cash flow it reported for 2015/2016.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News