BHP Billiton Profit Plunges 86% in Commodity Downturn

By Rhiannon Hoyle 
 

SYDNEY--BHP Billiton Ltd. (BHP.AU) said annual profit plunged 86% amid a deepening downturn in world commodity markets.

The company, the world's biggest miner by market value, on Tuesday reported a net profit of US$1.91 billion for the year through June, down from US$13.83 billion in the 12 months earlier.

Underlying earnings were down 52% at US$6.42 billion.

Net profit was weighed by higher noncash charges that reduced earnings by US$1.3 billion and included write downs against some oil fields.

Still, the company said it would give shareholders a final payout of US$0.62 a share, increasing its full-year payout 2% to US$1.24.

The price of commodities including coal, oil and iron ore have tumbled to multiyear lows in recent weeks. Production increases from projects planned when prices were booming have led to global over-supply, at a time when the economy in China, the world's biggest buyer of many resources, is slowing.

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(END) Dow Jones Newswires

August 25, 2015 02:58 ET (06:58 GMT)

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