BHP Billiton (ASX: BHP) stock rallied 3.25% on January 25, 2017 with the release of its operational review of half year ended December 31, 2016.
The group reported that its Bass Strait Longford Gas Conditioning Plant project achieved initial gas sales under budget during the December 2016 quarter. Further, production is ramping up to full rate. BHP also achieved mechanical completion at the Escondida Water Supply project with first water expected in the March 2017 quarter.
Record production for the half year at Western Australia Iron Ore (WAIO) was another highlight. This came at the back of continued ramp-up of additional capacity at Jimblebar with the commissioning of a new primary crusher and additional conveying capacity.
The group has maintained its full year production guidance for Petroleum, Iron Ore and Coal while production guidance for Copper has been reduced by 2% below the earlier guidance to about 1.62 Mt owing to lower volumes expected at Olympic Dam. BHP has now planned for an US$820 million exploration program for the current financial year for its Petroleum segment following the successful bid for Trion in Mexico and positive drilling results at LeClerc and Caicos.
The group now expects underlying attributable profit in the December 2016 half year to include gains related to asset divestments of about US$150 million to US$200 million. BHP stated that there is still some level uncertainty with regards to the potential financial impacts on BHP Billiton Brasil of the Samarco dam failure.
BHP stock has surged 76.77% in last one year (as at January 24, 2017). The first half results are reinforcing this blue-chip’s strength in bringing growth while keeping a track on production, balancing costs and investing for future.
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Production Results (Source: Company Reports)
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