BHP's Iron Ore Output Lifts On Year, Guidance Unchanged
21 January 2020 - 09:07AM
Dow Jones News
By David Winning
SYDNEY--BHP Group Ltd. (BHP.AU) reported stronger quarterly
production of iron ore as it continued to capitalize on high prices
for a commodity that is its main profit driver.
BHP said it produced 60 million metric tons of iron ore in the
three months through December, up 4% on the same period a year
earlier when it temporarily suspended all of its rail operations in
Australia's Pilbara region after a train ran loose for more than 50
miles before it was forcibly derailed.
The quarterly result means BHP, the world's biggest miner by
market value, produced 121 million tons of iron ore in its fiscal
first half. Management stuck with annual guidance for between 242
million tons and 253 million tons from its Pilbara operations.
BHP's Australian iron-ore shipments account for almost one-fifth
of seaborne trade in the commodity. It is the world's third-largest
iron-ore exporter, behind Vale SA (VALE) and Rio Tinto PLC
(RIO.LN).
BHP is in the midst of a leadership reshuffle that could have an
impact on its growth strategy and which commodities and operations
are favored for investment. Mike Henry became chief executive at
the start of this month, replacing Andrew Mackenzie who will leave
the company on March 31, three months sooner than was originally
scheduled.
Under Mr. Mackenzie's leadership, BHP sold assets ranging from
U.S. shale gas deposits to South African coal mines and jettisoned
a long-held pledge to increase its annual dividend. The result is a
slimmed-down company, but one more reliant on swings in prices of
just a handful of commodities such as iron ore and crude oil for
profit growth.
"We delivered solid operational performances across the
portfolio in the first half of the 2020 financial year, offsetting
the expected impacts of planned maintenance and natural field
decline," Mr. Henry said. "Our six major development projects are
progressing well, and we continue to advance our exploration
programs in petroleum and copper."
BHP said second-quarter output of petroleum products fell by 6%
to 28 million barrels of oil equivalent. That reflected the impact
of Tropical Storm Barry in the Gulf of Mexico and natural field
decline across the company's portfolio.
Quarterly copper output totaled 455,000 tons, driven by ongoing
improvements in maintenance and operational performance at the
Escondida mine in Chile.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
January 20, 2020 16:52 ET (21:52 GMT)
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