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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Bhp Group Limited | LSE:BHP | London | Ordinary Share | AU000000BHP4 | ORD NPV (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
18.00 | 0.80% | 2,275.00 | 2,278.00 | 2,278.50 | 2,286.50 | 2,264.50 | 2,286.00 | 1,147,582 | 16:35:26 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Crude Petroleum & Natural Gs | 54.19B | 12.92B | 2.5513 | 17.39 | 224.66B |
TIDMBHP
RNS Number : 6995N
BHP Group PLC
21 January 2019
Release Time IMMEDIATE Date 22 January 2019 Release Number 01/19
BHP OPERATIONAL REVIEW
FOR THE HALF YEARED 31 DECEMBER 2018
- Production guidance for the 2019 financial year remains unchanged for petroleum, iron ore, metallurgical coal and energy coal. Total copper production guidance increased to between 1,645 and 1,740 kt and reflects the retention of Cerro Colorado.
- Group copper equivalent production(1) was broadly unchanged in the December 2018 half year, with volumes for the full year also expected to be in line with last year.
- Full year unit costs for all major assets are expected to be in line with guidance(2) , predominantly reflecting stronger anticipated volumes in the second half of the year. However, unit costs were tracking above full year guidance at the December 2018 half year as a result of planned maintenance and production outages during the period.
- All major projects under development are tracking to plan.
- In Petroleum, the first appraisal well at Trion in Mexico (Trion-2DEL) encountered oil, in line with expectations. A downdip sidetrack is currently being drilled to further appraise the field.
- The Onshore US sale process was completed on 31 October 2018, with the net proceeds of US$10.4 billion to be returned to shareholders. On 17 December 2018, a US$5.2 billion off-market buy-back of BHP Group Limited shares was successfully completed. The balance of the net proceeds will be paid on 30 January 2019 as a special dividend of US$1.02 per share.
- The financial results for the December 2018 half year are expected to reflect certain items as summarised in the table on page two.
- Productivity for the December 2018 half year has been impacted by unplanned production outages at Olympic Dam, Spence and Western Australia Iron Ore, with a total negative impact of approximately US$600 million.
Dec H18 Dec Q18 (vs Dec (vs Sep Production H17) Q18) Dec Q18 commentary Lower seasonal gas sales at Bass Strait partially offset by Pyrenees resuming Petroleum production following maintenance in (MMboe) 63 30 the previous quarter. (-1%) (-8%) Copper (kt) 825 416 Record throughput at Cerro Colorado and higher volumes at Spence as production returned to full capacity following a fire in September 2018, partially offset by lower volumes at Escondida as a result of expected lower copper grades. (-1%) (+2%) Volumes at Western Australia Iron Ore (WAIO) impacted by a train derailment Iron ore (Mt) 119 58 on 5 November 2018. (+2%) (-6%) Record production at South Walker Creek Metallurgical offset by the impact of the scheduled coal (Mt) 21 10 longwall move at Broadmeadow. (+2%) (-1%) Energy coal 13 7 Increased production at New South Wales (Mt) Energy Coal (NSWEC) as a result of higher bypass coal offset by the impact of mine sequence changes at Cerrejón. (-5%) (0%)
BHP Chief Executive Officer, Andrew Mackenzie, said: "Production in the first half was broadly in line with the prior period despite planned maintenance and outages. In Petroleum, our first appraisal well at Trion in Mexico encountered oil and we added to our exploration options with successful bids for two licences offshore Eastern Canada. We completed the sale of our US shale assets and returned US$5.2 billion to shareholders through a share buy-back program, with a further US$5.2 billion to be returned as a special dividend on 30 January 2019."
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Summary
Operational performance
Production for the December 2018 half year and guidance for the 2019 financial year are summarised below.
Dec H18 Dec Q18 Dec Q18 vs vs vs Previous FY19 Current FY19 Production Dec H18 Dec Q18 Dec H17 Dec Q17 Sep Q18 guidance guidance Petroleum - Conventional (MMboe) 63 30 (1%) (2%) (8%) 113 - 118 113 - 118 Upper end of range Copper (kt) 825 416 (1%) (3%) 2% 1,620 - 1,705 1,645 - 1,740 Increased Escondida (kt) 580 285 0% (10%) (4%) 1,120 - 1,180 1,120 - 1,180 Unchanged Other copper(i) Cerro Colorado (kt) 245 132 (2%) 15% 16% 500 - 525 525 - 560 60 - 70 kt for FY19 Iron ore(ii) (Mt) 119 58 2% (6%) (6%) 241 - 250 241 - 250 Unchanged WAIO (100% basis) (Mt) 135 66 (1%) (9%) (6%) 273 - 283 273 - 283 Unchanged Metallurgical coal (Mt) 21 10 2% 6% (1%) 43 - 46 43 - 46 Unchanged Energy coal (Mt) 13 7 (5%) (9%) 0% 28 - 29 28 - 29 Unchanged
(i) Other copper comprises Pampa Norte (including Cerro Colorado production for the full 2019 financial year to reflect its retention, previous guidance only included 35 kt of production for the first half of the 2019 financial year), Olympic Dam and Antamina.
(ii) Increase in BHP's share of volumes reflects the expiry of the Wheelarra Joint Venture sublease in March 2018, with control of the sublease area reverted to the Jimblebar Joint Venture, which is accounted for on a consolidated basis with minority interest adjustments.
Summary of disclosures
BHP expects its financial results for the first half of the 2019 financial year to reflect certain items as summarised in the table below. The table does not provide a comprehensive list of all items impacting the period. The financial statements are the subject of ongoing work that will not be finalised until the release of the financial results on 19 February 2019. Accordingly, the information is subject to update.
H1 FY19 impact Description US$M(i) Classification(ii) Continuing operations Change in the accounting classification of 260 Revenue treatment and refining charges as a result Operating costs of IFRS15(3) (reclassification between revenue and operating costs) Unit costs tracking above full year guidance(2) Refer Operating costs in H1 FY19 as a result of planned maintenance footnote(iii) and production outages Exploration expense (including petroleum 222 Exploration and minerals exploration programs) expense Impairment charges related to the Whenan 100-150 Depreciation, shaft refurbishment project at Olympic Dam amortisation (changes to the mine access plan) and Cerro and impairments Colorado (termination of the sale and purchase agreement The Group's adjusted effective tax rate for Refer Taxation expense H1 FY19 is expected to be slightly above footnote(iii) the full year guidance range of 30 to 35 per cent Non-cash fair value adjustments related to Refer Net debt interest rate and exchange rate movements footnote(iii) are expected to increase net debt in H1 FY19 Higher Australian and Chilean income tax 700 Operating cash payments in H1 FY19 compared with H1 FY18 inflow primarily due to higher instalment rates and settlement of an Australian transfer pricing dispute Dividends paid to non-controlling interests 620 Financing cash outflow Reversal of provisions for global taxation 240 Exceptional matters which were resolved during the period item credit Financial impact on BHP Billiton Brasil of Refer Exceptional the Samarco Dam failure footnote(iii) item charge Discontinued operations Loss from Onshore US (after taxation) mainly 275-325 Profit after due to incremental costs (including redundancy taxation costs and retention payments to employees) and State and Federal tax expenses Net proceeds received from the sale of Onshore 7,028 Investing cash US (comprising Fayetteville US$0.3 billion inflow and Eagle Ford, Haynesville and Permian US$6.7 billion, representing one-half of the gross consideration at completion less customary completion adjustments and two instalment payments) (i) Numbers are not tax effected, unless otherwise noted.
(ii) There will be a corresponding balance sheet, cash flow and/or income statement impact as relevant.
(iii) Financial impact is the subject of ongoing work and is not yet finalised.
Productivity for the December 2018 half year has been impacted by lower than expected volumes at Olympic Dam (unplanned acid plant outage in August 2018, volume impact of 45 kt), Spence (fire at the electro-winning plant in September 2018, volume impact of 25 kt) and WAIO (train derailment in November 2018, volume impact of 4 Mt), with a total negative impact of approximately US$600 million. Productivity guidance for the full year is currently under review and revised guidance will be provided in December 2018 half year financial results.
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Average realised prices
The average realised prices achieved for our major commodities are summarised below.
Dec H18 vs Dec H18 Dec H18 Average realised Dec vs vs prices(i) Dec H18 Dec H17 Jun H18 FY18 H17 Jun H18 FY18 Oil (crude and condensate) (US$/bbl) 69.41 53.76 67.07 60.12 29% 3% 15% Natural gas (US$/Mscf)(ii) 3.98 3.54 3.71 3.62 12% 7% 10% US natural gas (US$/Mscf) 2.88 2.84 2.77 2.80 1% 4% 3% LNG (US$/Mscf) 10.19 7.48 8.65 8.07 36% 18% 26% Copper (US$/lb)(v) 2.54 3.08 2.93 3.00 (18%) (13%) (15%) Iron ore (US$/wmt, FOB) 55.62 56.54 56.86 56.71 (2%) (2%) (2%) Metallurgical coal (US$/t) 179.82 164.22 189.66 177.22 9% (5%) 1% Hard coking coal (US$/t)(iii) 197.86 182.29 205.80 194.59 9% (4%) 2% Weak coking coal (US$/t)(iii) 134.12 120.99 143.40 131.70 11% (6%) 2% Thermal coal (US$/t)(iv) 84.15 87.49 86.47 86.94 (4%) (3%) (3%) Nickel metal (US$/t) 12,480 11,083 13,974 12,591 13% (11%) (1%)
(i) Based on provisional, unaudited estimates. Prices exclude sales from equity accounted investments, third party product and internal sales, and represent the weighted average of various sales terms (for example: FOB, CIF and CFR), unless otherwise noted. Includes the impact of provisional pricing and finalisation adjustments.
(ii) Includes internal sales.
(iii) Hard coking coal (HCC) refers generally to those metallurgical coals with a Coke Strength after Reaction (CSR) of 35 and above, which includes coals across the spectrum from Premium Coking to Semi Hard Coking coals, while weak coking coal (WCC) refers generally to those metallurgical coals with a CSR below 35.
(iv) Export sales only; excludes Cerrejón. Includes thermal coal sales from metallurgical coal mines.
(v) Comparative financial information has been restated for the new accounting standard, IFRS15 Revenue from Contracts with Customers, which became effective from 1 July 2018.
The majority of iron ore shipments were linked to the index price for the month of shipment, with price differentials predominantly a reflection of product quality and market fundamentals. The majority of metallurgical coal and energy coal exports were linked to the index price for the month of shipment or sold on the spot market at fixed or index-linked prices, with price differentials reflecting product quality.
At 31 December 2018, the Group had 339 kt of outstanding copper sales that were revalued at a weighted average price of US$2.70 per pound. The final price of these sales will be determined over the remainder of the 2019 financial year. In addition, 364 kt of copper sales from the 2018 financial year were subject to a finalisation adjustment in the current period. The provisional pricing and finalisation adjustments will decrease Underlying EBITDA(4) by US$272 million in the 2019 financial year and is included in the average realised copper price in the above table.
Major development projects
During the December 2018 quarter, the North West Shelf Greater Western Flank-B project achieved first production ahead of schedule and under budget. The North West Shelf Greater Western Flank-B project will not be reported in future Operational Reviews.
At the end of December 2018, BHP had five major projects under development in petroleum, copper, iron ore and potash, with a combined budget of US$10.6 billion over the life of the projects.
Corporate update
The Onshore US sales process was completed on 31 October 2018, with the net proceeds of US$10.4 billion to be returned to shareholders through an off-market buy-back and a special dividend shareholder return program. On 17 December 2018, the US$5.2 billion off-market buy-back of BHP Group Limited shares was successfully completed and enabled the buy-back of approximately 265.8 million shares (5.0 per cent of the total issued capital of BHP Group Limited and BHP Group Plc) at A$27.64 per share. In addition, the Board of BHP determined to pay a special dividend to shareholders of US$1.02 per share, representing the residual US$5.2 billion of net proceeds, based on the reduced number of shares on issue (approximately 5,058 million) following completion of the off-market buy-back.
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On 19 November 2018, BHP settled its transfer pricing dispute relating to its marketing operations in Singapore with the Australian Taxation Office. The settlement fully resolved all prior years, being 2003 to 2018, with no admission of tax avoidance by BHP. As part of the settlement, BHP paid a total of approximately A$529 million in additional taxes for the prior years (BHP paid A$328 million of this amount when the amended assessments were received in prior years, with the balance of A$201 million paid in the December 2018 quarter). In addition, the settlement provides certainty in relation to the future taxation treatment as, due to a change in ownership of the main marketing entity, all profits made in Singapore in relation to the Australian assets owned by BHP Group Limited will be fully subject to Australian tax under the Controlled Foreign Company tax rules from the 2020 financial year.
BHP has agreed to fund a total of US$515 million in further financial support for the Renova Foundation and Samarco. This comprises US$438 million to fund the Renova Foundation until 31 December 2019 which will be offset against the Group's provision for the Samarco dam failure, and a short-term facility of up to US$77 million to be made available to Samarco until 30 June 2019.
As at the date of this Operational Review, we are not in a position to provide an update, for the purpose of the December 2018 half year financial results, on the ongoing potential financial impacts on BHP Billiton Brasil of the Samarco dam failure. Any financial impacts will continue to be treated as an exceptional item.
Petroleum
Production
Dec H18 Dec Q18 Dec Q18 vs vs vs Dec H18 Dec Q18 Dec H17 Dec Q17 Sep Q18 Crude oil, condensate and natural gas liquids (MMboe) 29 14 (5%) (3%) 3% Natural gas (bcf) 206 94 1% (2%) (16%) Total petroleum production (MMboe) 63 30 (1%) (2%) (8%)
Petroleum - Total Conventional petroleum production was broadly flat at 63 MMboe. Guidance for the 2019 financial year remains unchanged at between 113 and 118 MMboe, with volumes expected to be towards the upper end of the guidance range.
Crude oil, condensate and natural gas liquids production declined by five per cent to 29 MMboe due to natural field decline across the portfolio and a 70 day planned dry dock maintenance program at Pyrenees completed during the September 2018 quarter. This decline was partially offset by higher uptimes at our Gulf of Mexico assets.
Natural gas production was broadly flat at 206 bcf, reflecting increased tax barrels at Trinidad and Tobago in accordance with the terms of our Production Sharing Contract. This was partially offset by planned maintenance at Trinidad and Tobago in the December 2018 quarter and natural field decline across the portfolio.
On 30 November 2018, BHP completed the sale of its interests in the Bruce and Keith oil and gas fields in the United Kingdom to Serica Energy UK Ltd, with an effective date of 1 January 2018.
Projects
Project and Capital expenditure Initial production ownership US$M target date Capacity Progress North West Shelf 216 CY19 To maintain LNG plant First production Greater Western throughput from the achieved in October Flank-B North West Shelf 2018, ahead of (Australia) operations. schedule and below 16.67% (non-operator) budget. The overall project is 98% complete.
Mad Dog Phase 2 2,154 CY22 New floating On schedule and (US Gulf of Mexico) production facility budget. The overall 23.9% (non-operator) with the capacity to project is 37% produce up to 140,000 complete. gross barrels of crude oil per day.
During the December 2018 quarter, the Bass Strait West Barracouta project was approved. The A$200 million (BHP share) investment is expected to produce first gas in the 2021 calendar year to help offset Bass Strait production decline, and to deliver competitive returns.
On 8 January 2019, BP (the operator) announced the sanction of the Atlantis Phase 3 project. Approval from BHP's Board will be sought during the March 2019 quarter. Study work continues on the Ruby project in Trinidad and Tobago.
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Petroleum exploration
Exploration and appraisal wells drilled during the December 2018 quarter are summarised below.
Total Formation Water well Well Location Target age BHP equity Spud date depth depth Status Samurai-2 ST01 (sidetrack) US Gulf of Mexico GC476 Oil Miocene 50% 25 August 2018 1,088 m 10,088 m Plugged and abandoned (Murphy Operator) Concepcion-1 Trinidad & Tobago Gas Pleistocene/ 65% 30 September 2018 1,721 m 3,506 m No commercial hydrocarbons encountered; plugged and abandoned Block TTDAA 5 Pliocene (BHP Operator) Trion-2DEL Mexico Oil Eocene 60% 15 November 2018 2,379 m 4,659 m Hydrocarbons encountered Block AE-0093 (BHP Operator)
In the US Gulf of Mexico, a sidetrack of the Samurai-2 exploration well commenced on 25 August 2018 to further appraise the discovery, and was plugged and abandoned on 2 November 2018 after delineating the Samurai discovery. Appraisal and development planning is in progress. In the Western US Gulf of Mexico, the Ocean Bottom Node(5) seismic acquisition is expected to be completed in the March 2019 quarter. This is the world's first deepwater exploration ocean bottom node seismic acquisition.
In Trinidad and Tobago, the Concepcion-1 well was spud on 30 September 2018 to further test the Magellan play, with no commercial hydrocarbons encountered. The well was plugged and abandoned on 25 October 2018. This completed Phase 2 of our deepwater exploration drilling campaign in Trinidad and Tobago.
In Mexico, we spud the Trion-2DEL appraisal well on 15 November 2018 and encountered oil in line with expectations. This was the first well drilled by an international operator in the Mexican deepwater. A downdip sidetrack of the Trion-2DEL well commenced on 4 January 2019 to further appraise the field, including the oil water contact.
BHP was successful in its bids to acquire a 100 per cent interest in, and operatorship of, two exploration licences for blocks 8 and 12 in the Orphan Basin, offshore Eastern Canada. BHP's aggregate bid amount of US$625 million reflects the costs of the drilling and seismic work likely to be performed during the exploration phase, although there is no minimum work program under the licence agreements. BHP's minimum commitment under the licence agreements, if no work is performed, is approximately US$119 million for block 8 and US$38 million for block 12.
Petroleum exploration expenditure for the December 2018 half year was US$316 million, of which US$166 million was expensed. A US$750 million exploration and appraisal program is being executed for the 2019 financial year.
Onshore US - Discontinued operations
The Onshore US sales process was completed on 31 October 2018, with the rights to the economic profits transferring to the purchasers from 1 July 2018. Onshore US production for the July 2018 to October 2018 period was 26 MMboe, with drilling and development expenditure of US$0.4 billion. Our operated rig count remained unchanged at five, with two rigs at Eagle Ford, two rigs at Permian and one at Haynesville. We continue to provide certain transitional services to BP for up to nine months following completion, however no further production will be reported by BHP.
Copper
Production
Dec Q18 Dec H18 Dec Q18 vs vs vs Sep Dec H18 Dec Q18 Dec H17 Dec Q17 Q18 Copper (kt) 825 416 (1%) (3%) 2% Zinc (t) 54,795 24,237 (6%) (17%) (21%) Uranium oxide concentrate (t) 1,495 936 33% 285% 67%
Copper - Total copper production decreased by one per cent to 825 kt. Guidance for the 2019 financial year has been increased to between 1,645 and 1,740 kt and reflects the retention of Cerro Colorado.
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Escondida copper production was broadly unchanged at 580 kt as higher concentrator throughput and improved recoveries offset the impact of expected lower copper grades. Production guidance remains unchanged at between 1,120 and 1,180 kt for the 2019 financial year.
Pampa Norte copper production decreased by 17 per cent to 105 kt and reflects planned maintenance and a production outage at Spence following a fire at the electro-winning plant in September 2018. Record ore milled was achieved in the half year at both Spence and Cerro Colorado. Spence returned to full capacity during the December 2018 quarter, with production guidance of between 160 and 175 kt unchanged for the 2019 financial year. In the December 2018 quarter, BHP and EMR Capital agreed to terminate their agreement for the sale and purchase of Cerro Colorado after it became clear that the financing conditions of the transaction would not be satisfied by the end of the 2018 calendar year. Production at Cerro Colorado for the 2019 financial year is expected to be between 60 and 70 kt.
Olympic Dam copper production increased by 20 per cent to 65 kt as a result of the major smelter maintenance campaign in the prior period, which was partially offset by an unplanned acid plant outage in August 2018. Surface operations resumed at the end of October 2018 following completion of acid plant remediation works. Underground operations continue to progress into the Southern Mine Area, with record development kilometres achieved and the mine's third decline becoming fully operational in the quarter. Production guidance for the 2019 financial year remains unchanged at between 170 and 180 kt.
Antamina copper production increased by eight per cent to 75 kt due to higher head grades. Production guidance for the 2019 financial year remains unchanged at approximately 135 kt for copper and approximately 85 kt for zinc.
Projects
Initial Capital production Project and expenditure target ownership US$M date Capacity Progress Spence Growth Option 2,460 FY21 New 95 ktpd concentrator is expected to increase Spence's payable copper in concentrate production On schedule and budget. The overall p by approximately 185 ktpa in the first 10 years of operation and extend the mining operations roject is 34% complete. by more than 50 years. (Chile) 100%
Iron Ore
Production
Dec H18 Dec Q18 Dec Q18 vs vs vs Dec H18 Dec Q18 Dec H17 Dec Q17 Sep Q18 Iron ore (kt) 119,226 57,835 2% (6%) (6%)
Iron ore - Total iron ore production increased by two per cent to 119 Mt (135 Mt on a 100 per cent basis). Guidance for the 2019 financial year remains unchanged at between 241 and 250 Mt, or between 273 and 283 Mt on a 100 per cent basis.
At WAIO, increased volumes reflected record production at Jimblebar and the impact from the Mt Whaleback fire in the prior period. This was partially offset by the impact of planned maintenance in the September 2018 quarter and a train derailment on 5 November 2018 which resulted in the suspension of rail operations for five days and a production impact of approximately 4 Mt. During the rail outage, mine stockpile levels were built and are expected to be partially drawn down in the March 2019 quarter.
Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015.
Projects
Initial Capital production Project and expenditure target ownership US$M date Capacity Progress South Flank 3,061 CY21 Sustaining iron ore mine to replace production from the 80 Mtpa (100 per cent basis) Yandi On schedule and budget. The overall p mine. roject is 21% complete. (Australia) 85%
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Coal
Production
Dec H18 Dec Q18 Dec Q18 vs vs vs Dec H18 Dec Q18 Dec H17 Dec Q17 Sep Q18 Metallurgical coal (kt) 20,630 10,272 2% 6% (1%) Energy coal (kt) 13,307 6,667 (5%) (9%) 0%
Metallurgical coal - Metallurgical coal production increased by two per cent to 21 Mt. Guidance for the 2019 financial year remains unchanged at between 43 and 46 Mt, with volumes weighted to the second half of the year as expected.
At Queensland Coal, increased production was supported by record production at South Walker Creek and higher wash-plant throughput at Poitrel following the purchase of the Red Mountain processing facility. This increase was partially offset by the scheduled longwall move at Broadmeadow which was successfully completed during the quarter.
The Caval Ridge Southern Circuit project was completed according to plan with the conveying of first coal in October 2018.
Energy coal - Energy coal production decreased by five per cent to 13 Mt. Guidance for the 2019 financial year remains unchanged at approximately 28 to 29 Mt.
New South Wales Energy Coal production decreased by four per cent as a result of a higher average strip ratio. Cerrejón production decreased by seven per cent due to mine sequence changes.
Other
Nickel production
Dec H18 Dec Q18 Dec Q18 vs vs vs Dec H18 Dec Q18 Dec H17 Dec Q17 Sep Q18 Nickel (kt) 39.5 18.1 (15%) (22%) (15%)
Nickel - Nickel West production decreased by 15 per cent to 40 kt as operations were suspended following a fire at the Kalgoorlie smelter in September 2018. The smelter returned to operation on 1 October 2018, with full repairs now expected to be completed in the March 2019 quarter. Planned maintenance at the Kwinana refinery was brought forward to align with the smelter outage and, as a result, production guidance for the 2019 financial year remains unchanged and is expected to be broadly in line with the 2018 financial year.
Potash project
Project and Investment ownership US$M Scope Progress Jansen Potash 2,700 Investment to finish the excavation and lining of the production and service shafts, The project is 82% complete and within the approved budget. and to The main activity for the quarter continue the installation of essential surface infrastructure and utilities. focussed on removing the boring equipment from both shafts. (Canada) 100%
Minerals exploration
Minerals exploration expenditure for the December 2018 half year was US$81 million, of which US$56 million was expensed. Greenfield minerals exploration is predominantly focused on advancing copper targets within Chile, Ecuador, Peru, Canada, South Australia and the South-West United States.
Consistent with our exploration focus on copper, in September 2018, BHP acquired an initial 6.1 per cent interest in SolGold Plc (SolGold), the majority owner and operator of the Cascabel porphyry copper-gold project in Ecuador. On 15 October 2018, BHP entered into an agreement to acquire an additional 100 million shares in SolGold, for an investment of US$59 million, with our total interest now approximately 11.2 per cent.
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In November 2018, BHP confirmed identification of a potential new iron oxide, copper, gold (IOCG) mineralised system, located 65 kilometres to the south east of BHP's operations at Olympic Dam in South Australia. BHP is evaluating and interpreting the results reported and planning a further drilling program, to commence in early in the 2019 calendar year.
Variance analysis relates to the relative performance of BHP and/or its operations during the December 2018 half year compared with the December 2017 half year, unless otherwise noted. Production volumes, sales volumes and capital and exploration expenditure from subsidiaries are reported on a 100 per cent basis; production and sales volumes from equity accounted investments and other operations are reported on a proportionate consolidation basis. Numbers presented may not add up precisely to the totals provided due to rounding. Copper equivalent production based on 2018 financial year average realised prices.
The following footnotes apply to this Operational Review:
(1) Excludes production from Onshore US.
(2) 2019 financial year unit cost guidance: Conventional Petroleum <US$11/boe, Escondida <US$1.15/lb, WAIO <US$14/t, Queensland Coal US$68-72/t and NSWEC US$43-48/t; based on exchange rates of AUD/USD 0.75 and USD/CLP 663.
(3) IFRS15 Revenue from Contracts with Customers became effective for the Group from 1 July 2018.
(4) Underlying EBIT and Underlying EBITDA are used to reflect the underlying performance of BHP. Underlying EBIT is earnings before net finance costs, taxation and any exceptional items. Underlying EBITDA is Underlying EBIT before depreciation, amortisation and impairment.
(5) WGOM OBN 2018 Seismic Permit is OCS Permit T18-010.
The following abbreviations may have been used throughout this report: barrels (bbl); billion cubic feet (bcf); cost and freight (CFR); cost, insurance and freight (CIF); dry metric tonne unit (dmtu); free on board (FOB); grams per tonne (g/t); kilograms per tonne (kg/t); kilometre (km); metre (m); million barrels of oil equivalent (MMboe); million cubic feet per day (MMcf/d); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent (Mboe); thousand ounces (koz); thousand standard cubic feet (Mscf); thousand tonnes (kt); thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); and wet metric tonnes (wmt).
In this release, the terms 'BHP', 'Group', 'BHP Group', 'we', 'us', 'our' and ourselves' are used to refer to BHP Group Limited, BHP Group Plc and, except where the context otherwise requires, their respective subsidiaries as defined in note 27 'Subsidiaries' in section 5.1 of BHP's 30 June 2018 Annual Report on Form 20-F, unless stated otherwise. Notwithstanding that this release may include production, financial and other information from non-operated assets, non-operated assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to our operated assets unless stated otherwise.
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Production summary
Quarter ended Year to date BHP Dec Mar Jun Sep Dec Dec Dec interest 2017 2018 2018 2018 2018 2018 2017 Petroleum (1) Petroleum Conventional Crude oil, condensate and NGL (Mboe) 14,869 13,960 13,486 14,087 14,497 28,584 29,959 Natural gas (bcf) 96.1 82.9 90.7 112.3 93.9 206.2 203.4 Total (Mboe) 30,886 27,777 28,603 32,804 30,147 62,951 63,859 Total petroleum production (MMboe) 48.4 44.7 49.0 52.8 36.1 88.9 98.7 Copper (2) Copper Payable metal in concentrate (kt) Escondida (3) 57.5% 238.5 244.9 246.1 240.0 212.6 452.6 434.8 Antamina 33.8% 33.8 35.2 34.6 37.0 38.3 75.3 69.7
Total 272.3 280.1 280.7 277.0 250.9 527.9 504.5 Cathode (kt) Escondida (3) 57.5% 76.1 69.4 70.1 55.4 71.9 127.3 148.0 Pampa Norte (4) 100% 68.4 66.8 70.6 43.4 61.8 105.2 126.4 Olympic Dam 100% 12.2 40.5 42.0 33.3 31.6 64.9 54.2 Total 156.7 176.7 182.7 132.1 165.3 297.4 328.6 Total copper (kt) 429.0 456.8 463.4 409.1 416.2 825.3 833.1 Lead Payable metal in concentrate (t) Antamina 33.8% 1,009 464 546 563 600 1,163 2,424 Total 1,009 464 546 563 600 1,163 2,424 Zinc Payable metal in concentrate (t) Antamina 33.8% 29,054 25,562 35,983 30,558 24,237 54,795 58,255 Total 29,054 25,562 35,983 30,558 24,237 54,795 58,255 Gold Payable metal in concentrate (troy oz) Escondida (3) 57.5% 50,279 59,953 68,345 63,578 73,726 137,304 100,804 Olympic Dam (refined gold) 100% 15,969 28,989 33,497 23,471 17,856 41,327 29,070 Total 66,248 88,942 101,842 87,049 91,582 178,631 129,874
10
Quarter ended Year to date BHP Dec Mar Jun Sep Dec Dec Dec interest 2017 2018 2018 |2018 2018 2018 2017 Silver Payable metal in concentrate (troy koz) Escondida (3) 57.5% 2,193 2,339 2,527 1,997 2,570 4,567 3,930 Antamina 33.8% 1,331 1,189 1,321 1,309 1,178 2,487 2,927 Olympic Dam (refined silver) 100% 135 248 278 213 212 425 266 Total 3,659 3,776 4,126 3,519 3,960 7,479 7,123 Uranium Payable metal in concentrate (t) Olympic Dam 100% 243 1,118 1,123 559 936 1,495 1,123 Total 243 1,118 1,123 559 936 1,495 1,123 Molybdenum Payable metal in concentrate (t) Antamina 33.8% 579 420 261 464 417 881 981 Total 579 420 261 464 417 881 981
11
Production summary
Quarter ended Year to date BHP Dec Mar Jun Sep Dec Dec Dec interest 2017 2018 2018 |2018 2018 2018 2017 Iron Ore Iron Ore Production (kt) (5) Newman 85% 18,317 16,412 18,500 16,378 17,578 33,956 32,159 Area C Joint Venture 85% 13,575 12,802 12,041 11,696 10,280 21,976 26,674 Yandi Joint Venture 85% 16,348 15,802 17,339 16,870 15,627 32,497 30,907 Jimblebar (6) 85% 4,583 4,669 15,092 16,333 14,320 30,653 10,866 Wheelarra 85% 8,734 8,006 614 114 30 144 16,538 Samarco 50% - - - - - - - Total 61,557 57,691 63,586 61,391 57,835 119,226 117,144 Coal Metallurgical coal Production (kt) (7) BMA 50% 7,394 7,983 9,220 7,744 7,694 15,438 15,690 BHP Mitsui Coal (8) 80% 2,291 2,396 2,789 2,614 2,578 5,192 4,562 Total 9,685 10,379 12,009 10,358 10,272 20,630 20,252 Energy coal Production (kt) Australia 100% 4,383 3,662 6,261 3,982 4,311 8,293 8,618 Colombia 33.3% 2,914 2,444 2,762 2,658 2,356 5,014 5,411 Total 7,297 6,106 9,023 6,640 6,667 13,307 14,029 Other Nickel Saleable production (kt) Nickel West (9) 100% 23.1 21.1 25.6 21.4 18.1 39.5 46.4 Total 23.1 21.1 25.6 21.4 18.1 39.5 46.4 Cobalt Saleable production (t) Nickel West 100% 263 240 277 249 154 403 543 Total 263 240 277 249 154 403 543
(1) LPG and ethane are reported as natural gas liquids (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe). Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe.
(2) Metal production is reported on the basis of payable metal. (3) Shown on a 100% basis. BHP interest in saleable production is 57.5%. (4) Includes Cerro Colorado and Spence. (5) Iron ore production is reported on a wet tonnes basis. (6) Shown on a 100% basis. BHP interest in saleable production is 85%.
(7) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.
(8) Shown on a 100% basis. BHP interest in saleable production is 80%. (9) Production restated to include other nickel by-products.
Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported.
12
Production and sales report
Quarter ended Year to date Dec Mar Jun Sep Dec Dec Dec 2017 2018 2018 2018 2018 2018 2017 Petroleum - Conventional (1) Bass Strait Crude oil and condensate (Mboe) 1,513 1,126 1,361 1,653 1,401 3,054 3,328 NGL (Mboe) 1,584 1,170 1,428 1,840 1,447 3,287 3,534 Natural gas (bcf) 32.9 20.5 29.9 35.1 25.2 60.3 75.5 Total petroleum products (MMboe) 8.6 5.7 7.8 9.3 7.0 16.4 19.4 North West Shelf Crude oil and condensate (Mboe) 1,442 1,377 1,267 1,514 1,520 3,034 2,916 NGL (Mboe) 200 210 186 242 206 448 427 Natural gas (bcf) 36.2 35.8 34.2 36.6 37.5 74.1 72.4 Total petroleum products (MMboe) 7.7 7.6 7.2 7.9 8.0 15.8 15.4 Pyrenees Crude oil and condensate (Mboe) 1,210 1,250 1,168 282 1,101 1,383 2,720 Total petroleum products (MMboe) 1.2 1.3 1.2 0.3 1.1 1.4 2.7 Other Australia (2) Crude oil and condensate (Mboe) 8 8 7 7 8 15 17 Natural gas (bcf) 13.3 13.4 13.9 13.8 13.9 27.7 29.4 Total petroleum products (MMboe) 2.2 2.2 2.3 2.3 2.3 4.6 4.9 Atlantis (3) Crude oil and condensate (Mboe) 3,377 3,459 3,471 3,190 3,802 6,992 6,399 NGL (Mboe) 195 248 217 215 268 483 413 Natural gas (bcf) 1.8 1.8 1.5 1.5 1.9 3.4 3.4 Total petroleum products (MMboe) 3.9 4.0 3.9 3.7 4.4 8.0 7.4 Mad Dog (3) Crude oil and condensate (Mboe) 1,231 1,140 581 1,270 1,158 2,428 2,251 NGL (Mboe) 72 55 27 61 54 115 116 Natural gas (bcf) 0.2 0.2 0.1 0.2 0.2 0.4 0.3 Total petroleum products (MMboe) 1.3 1.2 0.6 1.4 1.2 2.6 2.4 Shenzi (3) Crude oil and condensate (Mboe) 2,513 2,323 2,110 2,016 2,024 4,040 4,804 NGL (Mboe) 184 140 151 122 121 243 325 Natural gas (bcf) 0.5 0.4 0.4 0.4 0.4 0.8 0.9 Total petroleum products (MMboe) 2.8 2.5 2.3 2.2 2.2 4.4 5.3
13
Production and sales report
Quarter ended Year to date Dec Mar Jun Sep Dec Dec Dec 2017 2018 2018 2018 2018 2018 2017 Petroleum - Conventional (1) (continued) Trinidad/Tobago Crude oil and condensate (Mboe) 135 232 233 447 200 647 253 Natural gas (bcf) 10.5 10.0 9.8 24.0 14.0 38.0 20.2 Total petroleum products (MMboe) 1.9 1.9 1.9 4.4 2.5 7.0 3.6 Other Americas (3) (4) Crude oil and condensate (Mboe) 207 189 313 207 218 425 436 NGL (Mboe) 3 3 22 3 4 7 8 Natural gas (bcf) 0.1 - 0.3 - 0.1 0.1 0.2 Total petroleum products (MMboe) 0.2 0.2 0.4 0.2 0.2 0.4 0.5 UK (5) Crude oil and condensate (Mboe) 22 43 38 36 36 72 62 NGL (Mboe) 13 18 18 21 21 42 52 Natural gas (bcf) 0.6 0.8 0.6 0.7 0.7 1.4 1.1 Total petroleum products (MMboe) 0.1 0.2 0.2 0.2 0.2 0.3 0.3 Algeria Crude oil and condensate (Mboe) 960 969 888 961 908 1,869 1,898 Total petroleum products (MMboe) 1.0 1.0 0.9 1.0 0.9 1.9 1.9 Petroleum - Total (1) Conventional Crude oil and condensate (Mboe) 12,618 12,116 11,437 11,583 12,376 23,959 25,084 NGL (Mboe) 2,251 1,844 2,049 2,504 2,121 4,625 4,875 Natural gas (bcf) 96.1 82.9 90.7 112.3 93.9 206.2 203.4 Total (Mboe) 30,886 27,777 28,603 32,804 30,147 62,951 63,859 Total petroleum production (MMboe) 48,392.0 44,716.0 48,952.0 52,854.7 36,061.0 88,916 98,678
(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures represent finalisation adjustments.
(2) Other Australia includes Minerva and Macedon. (3) Gulf of Mexico volumes are net of royalties. (4) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.
(5) BHP completed the sale of its interest in the Bruce and Keith oil and gas fields on 30 November 2018. The sale has an effective date of 1 January 2018.
14
Production and sales report
Quarter ended Year to date Dec Mar Jun Sep Dec Dec Dec 2017 2018 2018 2018 2018 2018 2017 Copper Metals production is payable metal unless otherwise stated. Escondida, Chile (1) Material mined (kt) 101,371 103,385 106,788 107,260 105,580 212,840 206,238 Sulphide ore milled (kt) 30,260 32,203 31,732 30,513 30,507 61,020 54,340 Average concentrator head grade (%) 0.98% 0.96% 0.96% 0.94% 0.87% 0.91% 1.02% Production ex mill (kt) 245.7 252.6 253.6 241.9 219.9 461.8 449.9 Production Payable copper (kt) 238.5 244.9 246.1 240.0 212.6 452.6 434.8 Copper cathode (EW) (kt) 76.1 69.4 70.1 55.4 71.9 127.3 148.0 - Oxide leach (kt) 27.4 24.5 27.1 19.5 23.4 42.9 49.8 - Sulphide leach (kt) 48.7 44.9 43.0 35.8 48.5 84.3 98.2 Total copper (kt) 314.6 314.3 316.2 295.4 284.5 579.9 582.8 (troy Payable gold concentrate oz) 50,279 59,953 68,345 63,578 73,726 137,304 100,804 (troy Payable silver concentrate koz) 2,193 2,339 2,527 1,997 2,570 4,567 3,930 Sales Payable copper (kt) 236.7 228.3 260.3 216.5 229.2 445.7 431.8 Copper cathode (EW) (kt) 84.1 61.7 80.9 53.2 72.3 125.5 145.7 (troy Payable gold concentrate oz) 50,279 59,953 68,345 63,578 73,726 137,304 100,804 (troy Payable silver concentrate koz) 2,193 2,339 2,527 1,997 2,570 4,567 3,930
(1) Shown on a 100% basis. BHP interest in saleable production is 57.5%.
Pampa Norte, Chile Cerro Colorado Material mined (kt) 20,191 17,766 17,918 18,488 19,875 38,363 41,572 Ore milled (kt) 4,611 4,905 4,833 4,802 5,069 9,871 8,562 Average copper grade (%) 0.59% 0.58% 0.58% 0.53% 0.62% 0.58% 0.60% Production Copper cathode (EW) (kt) 17.4 13.6 19.0 14.2 19.4 33.6 30.7 Sales Copper cathode (EW) (kt) 17.7 13.7 20.9 13.8 19.0 32.8 30.0 Spence Material mined (kt) 23,096 21,463 23,103 23,007 21,661 44,668 45,410 Ore milled (kt) 4,919 5,144 4,009 5,642 5,428 11,070 10,294 Average copper grade (%) 1.18% 1.03% 1.11% 1.15% 1.07% 1.11% 1.20% Production Copper cathode (EW) (kt) 51.0 53.2 51.6 29.2 42.4 71.6 95.7 Sales Copper cathode (EW) (kt) 52.2 49.8 57.1 29.7 39.1 68.8 95.2
15
Production and sales report
Quarter ended Year to date Dec Mar Jun Sep Dec Dec Dec 2017 2018 2018 2018 2018 2018 2017 Copper (continued) Metals production is payable metal unless otherwise stated. Antamina, Peru Material mined (100%) (kt) 59,125 58,085 59,002 62,470 62,850 125,320 118,341 Sulphide ore milled (100%) (kt) 13,098 12,166 12,973 13,197 12,912 26,109 25,920 Average head grades - Copper (%) 0.89% 1.01% 0.91% 0.96% 1.02% 0.99% 0.91% - Zinc (%) 0.93% 1.01% 1.19% 1.10% 0.85% 0.98% 0.96% Production Payable copper (kt) 33.8 35.2 34.6 37.0 38.3 75.3 69.7 Payable zinc (t) 29,054 25,562 35,983 30,558 24,237 54,795 58,255 (troy Payable silver koz) 1,331 1,189 1,321 1,309 1,178 2,487 2,927 Payable lead (t) 1,009 464 546 563 600 1,163 2,424 Payable molybdenum (t) 579 420 261 464 417 881 981 Sales Payable copper (kt) 37.0 32.1 36.6 33.6 40.7 74.3 68.9 Payable zinc (t) 30,340 26,456 33,088 31,822 26,072 57,894 55,564 (troy Payable silver koz) 1,470 1,052 1,311 1,193 1,236 2,429 2,945 Payable lead (t) 972 859 595 612 649 1,261 2,596 Payable molybdenum (t) 693 500 388 208 535 743 861 Olympic Dam, Australia Material mined (1) (kt) 1,391 2,056 2,201 2,044 2,434 4,478 3,242 Ore milled (kt) 554 2,188 2,171 1,242 2,157 3,399 2,856 Average copper grade (%) 2.22% 2.36% 2.12% 2.05% 2.10% 2.08% 2.12% Average uranium grade (kg/t) 0.58 0.71 0.69 0.62 0.62 0.62 0.56 Production Copper cathode (ER and EW) (kt) 12.2 40.5 42.0 33.3 31.6 64.9 54.2 Uranium oxide concentrate (t) 243 1,118 1,123 559 936 1,495 1,123 (troy Refined gold oz) 15,969 28,989 33,497 23,471 17,856 41,327 29,070 (troy Refined silver koz) 135 248 278 213 212 425 266 Sales Copper cathode (ER and EW) (kt) 24.3 36.8 46.0 33.9 26.6 60.5 55.9 Uranium oxide concentrate (t) 338 509 1,230 765 828 1,593 1,018 (troy Refined gold oz) 17,999 20,715 35,714 21,145 17,812 38,957 40,434 (troy
Refined silver koz) 118 202 307 216 177 393 337
(1) Material mined refers to run of mine ore mined and hoisted.
16
Production and sales report
Quarter ended Year to date Dec Mar Jun Sep Dec Dec Dec 2017 2018 2018 2018 2018 2018 2017 Iron Ore Iron ore production and sales are reported on a wet tonnes basis. Pilbara, Australia Production Newman (kt) 18,317 16,412 18,500 16,378 17,578 33,956 32,159 Area C Joint Venture (kt) 13,575 12,802 12,041 11,696 10,280 21,976 26,674 Yandi Joint Venture (kt) 16,348 15,802 17,339 16,870 15,627 32,497 30,907 Jimblebar (1) (kt) 4,583 4,669 15,092 16,333 14,320 30,653 10,866 Wheelarra (kt) 8,734 8,006 614 114 30 144 16,538 Total production (kt) 61,557 57,691 63,586 61,391 57,835 119,226 117,144 Total production (100%) (kt) 71,611 67,048 72,145 69,342 65,515 134,857 135,898 Sales Lump (kt) 15,145 13,993 15,173 15,014 14,020 29,034 29,041 Fines (kt) 45,769 44,332 47,730 46,527 44,059 90,586 86,502 Total (kt) 60,914 58,325 62,903 61,541 58,079 119,620 115,543 Total sales (100%) (kt) 70,733 67,799 71,385 69,421 65,758 135,179 134,055 (1) Shown on a 100% basis. BHP interest in saleable production is 85%. Samarco, Brazil (1) Production (kt) - - - - - - - Sales (kt) 14 25 - - 10 10 14
(1) Mining and processing operations remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015.
17
Production and sales report
Quarter ended Year to date Dec Mar Jun Sep Dec Dec Dec 2017 2018 2018 2018 2018 2018 2017 Coal Coal production is reported on the basis of saleable product. Queensland Coal Production (1) BMA Blackwater (kt) 1,470 1,384 1,849 1,704 1,680 3,384 3,455 Goonyella (kt) 1,369 2,314 2,639 1,989 1,813 3,802 3,008 Peak Downs (kt) 1,367 1,723 1,658 1,131 1,662 2,793 2,969 Saraji (kt) 1,198 1,240 1,201 1,111 1,288 2,399 2,612 Daunia (kt) 718 547 629 620 419 1,039 1,380 Caval Ridge (kt) 1,272 775 1,244 1,189 832 2,021 2,266 Total BMA (kt) 7,394 7,983 9,220 7,744 7,694 15,438 15,690 BHP Mitsui Coal (2) South Walker Creek (kt) 1,524 1,490 1,615 1,505 1,636 3,141 2,924 Poitrel (kt) 767 906 1,174 1,109 942 2,051 1,638 Total BHP Mitsui Coal (kt) 2,291 2,396 2,789 2,614 2,578 5,192 4,562 Total Queensland Coal (kt) 9,685 10,379 12,009 10,358 10,272 20,630 20,252 Sales Coking coal (kt) 6,341 7,177 8,489 7,356 7,514 14,870 14,275 Weak coking coal (kt) 2,816 2,598 2,866 2,813 3,058 5,871 5,966 Thermal coal (kt) 173 168 85 141 157 298 275 Total (kt) 9,330 9,943 11,440 10,310 10,729 21,039 20,516 (1) Production figures include some thermal coal. (2) Shown on a 100% basis. BHP interest in saleable production is 80%.
18
NSW Energy Coal, Australia Production (kt) 4,383 3,662 6,261 3,982 4,311 8,293 8,618 Sales Export thermal coal (kt) 4,048 3,181 5,795 3,549 4,809 8,358 7,670 Inland thermal coal (kt) 411 400 160 332 393 725 816 Total (kt) 4,459 3,581 5,955 3,881 5,202 9,083 8,486 Cerrejón, Colombia Production (kt) 2,914 2,444 2,762 2,658 2,356 5,014 5,411 Sales thermal coal - export (kt) 2,619 2,480 2,763 2,589 2,297 4,886 5,137
Production and sales report
Quarter ended Year to date Dec Mar Jun Sep Dec Dec Dec 2017 2018 2018 2018 2018 2018 2017 Other Nickel production is reported on the basis of saleable product Nickel West, Australia Mt Keith Nickel concentrate (kt) 49.8 44.9 55.6 50.2 44.9 95.1 104.2 Average nickel grade (%) 20.3 21.3 18.8 18.9 19.8 38.7 40.7 Leinster Nickel concentrate (kt) 87.6 54.7 78.4 78.8 65.3 144.1 166.3 Average nickel grade (%) 8.8 9.3 9.8 8.4 8.4 16.8 18.1 Saleable production Refined nickel (1) (2) (kt) 17.7 19.2 18.5 19.8 16.3 36.1 33.7 Intermediates and nickel by-products (1) (3) (kt) 5.4 1.9 7.1 1.6 1.8 3.4 12.7 Total nickel (1) (kt) 23.1 21.1 25.6 21.4 18.1 39.5 46.4 Cobalt by-products (t) 263 240 277 249 154 403 543 Sales Refined nickel (1) (2) (kt) 17.7 19.5 17.5 19.3 17.3 36.6 34.0 Intermediates and nickel by-products (1) (3) (kt) 6.9 2.5 6.3 2.2 2.1 4.3 11.9 Total nickel (1) (kt) 24.6 21.9 23.8 21.5 19.4 40.9 45.9 Cobalt by-products (t) 263 240 277 249 154 403 543 (1) Production and sales restated to include other nickel by-products. (2) High quality refined nickel metal, including briquettes and powder. (3) Nickel contained in matte and by-product streams.
19
Production and sales report
Quarter ended Year to date Dec Mar Jun Sep Dec Dec Dec 2017 2018 2018 2018 2018 2018 2017 Onshore US - Discontinued operations (1)(2) Eagle Ford (3) Crude oil and condensate (Mboe) 3,720 2,838 3,826 3,256 1,035 4,291 7,177 NGL (Mboe) 2,100 1,555 1,767 1,919 614 2,533 3,956 Natural gas (bcf) 14.4 12.6 13.9 13.8 4.3 18.1 28.2 Total petroleum products (MMboe) 8.2 6.5 7.9 7.5 2.4 9.8 15.8 Permian (3) Crude oil and condensate (Mboe) 1,142 1,398 1,903 1,478 631 2,109 2,321 NGL (Mboe) 460 465 770 687 284 971 1,047 Natural gas (bcf) 3.6 4.1 6.4 4.8 1.9 6.7 8.1 Total petroleum products (MMboe) 2.2 2.5 3.7 3.0 1.2 4.2 4.7 Haynesville (3) Crude oil and condensate (Mboe) 1 - - 11 - 11 1 NGL (Mboe) - - - - - - - Natural gas (bcf) 22.0 28.7 33.1 39.0 13.9 52.9 43.5 Total petroleum products (MMboe) 3.7 4.8 5.5 6.5 2.3 8.8 7.3 Fayetteville (4) Natural gas (bcf) 20.5 18.7 19.1 18.6 - 18.6 42.1 Total petroleum products (MMboe) 3.4 3.1 3.2 3.1 - 3.1 7.0 Onshore US Crude oil and condensate (Mboe) 4,863 4,236 5,729 4,745 1,666 6,411 9,499 NGL (Mboe) 2,560 2,020 2,537 2,606 898 3,504 5,003 Natural gas (bcf) 60.5 64.1 72.5 76.2 20.1 96.3 121.9 Total (Mboe) 17,506 16,939 20,349 20,051 5,914 25,965 34,819
(1) Total boe conversions are based on 6 bcf of natural gas equals 1 MMboe. Negative production figures represent finalisation adjustments.
(2) Volumes are net of mineral holder royalties.
(3) BHP completed the sale of its interests in the Eagle Ford, Haynesville and Permian assets on 31 October 2018.
(4) BHP completed the sale of its Fayetteville assets on 28 September 2018.
20
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January 22, 2019 02:00 ET (07:00 GMT)
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