Friday, 18 Feb 2011
BHP Billiton underlying EBIT was USD 1,453 million, an increase of USD 681 million or 88% from the corresponding period. The significant improvement in EBIT margin was largely attributable to higher realized prices.
Hard coking coal, weak coking coal and thermal coal prices increased by 50%, 57% and 43% respectively.
In total, higher prices increased Underlying EBIT by USD 1,147 million, after allowing for the royalty related increase in price linked costs.
Hard coking coal, weak coking coal and thermal coal prices increased by 50%, 57% and 43% respectively.
In total, higher prices increased Underlying EBIT by USD 1,147 million, after allowing for the royalty related increase in price linked costs.
Queensland Coal (Australia) production was significantly affected by the persistent rain and flooding that impacted the Bowen Basin in the December 2010 half year. The effect on Queensland Coal sales was minimized by the healthy level of inventory that was held across our supply chain at the commencement of the December 2010 half year. However, weather related disruption and higher labour and contractor rates contributed to an increase in costs for the period. Furthermore, the combined impact of a weaker US dollar and inflation reduced Underlying EBIT by USD 291 million.
BHP Billiton continues to assess the impact of the extreme weather events and confirms that force majeure has been declared for the majority of our Bowen Basin products, including Goonyella Riverside, Peak Downs, Norwich Park, Gregory Crinum, South Walker, Blackwater and Saraji.
The decision to double pumping capacity following severe wet weather in the March 2008 quarter has minimized in-pit water accumulation, although heavy rainfall that persisted for much of the December 2010 half year has significantly restricted overburden removal. When combined with disruptions to external infrastructure, we expect an ongoing impact on production, sales and unit costs for the remainder of the 2011 financial year.
The decision to double pumping capacity following severe wet weather in the March 2008 quarter has minimized in-pit water accumulation, although heavy rainfall that persisted for much of the December 2010 half year has significantly restricted overburden removal. When combined with disruptions to external infrastructure, we expect an ongoing impact on production, sales and unit costs for the remainder of the 2011 financial year.
Posts
No comments:
Post a Comment