‘We are not wavering from our plan”

Last week, Financial Times reported that BHP recorded a net loss of $6.4 billion, it largest annual loss ever. This, FT said, was due to write downs and impairments amounting to over $7 billion. These arose from the failure of a dam in Brazil BHP owns as part of a joint venture, along with costs associated with the company’s investment in shale oil and gas exploration.

However, the firm’s outlook remains positive. In a response to a query about the FT story from Business Day, BHP’s local office said, “The statutory loss was disappointing, however, the underlying performance of the business remains strong and demonstrates the strength of our portfolio, including a free cash fl ow of $3.4 billion in FY 16.” These sentiments were echoed by CEO of BHP Billiton Ltd., Andrew Mackenzie, who said in the FT report that even though the past 12 months have been challenging for both the company and the resources industry, “our results demonstrate the resilience of our portfolio and the diverse ways in which we can create value for our shareholders.” The FT story continued that even though underlying earning before interest, tax, depreciation and amortisation was down 44 percent and underlying profit was reduced $1.2 billion, 81 percent lower than the FY 15 result, BHP Billiton was sti ll able to outperform analysts’ predictions of $1.1 billion.

BHP’s local office said they will not waver from their plans for Trinidad and Tobago, which include the exploration of eight wells in total. Positive results were reported for the first, the Le Clerc well earlier this month. According to BHP, gas was encountered in multiple zones of the 22, 876 foot well.

At the ti me, BHP’s president Petroleum, Steve Pastor had said that while the main focus of the firm’s drilling programme was oil, the company was “encouraged” by the results of the Le Clerc well. He also said the result would help BHP with its plans to “further appraise the basin as part of our extensive Trinidad and Tobago exploration programme.” “Our view of the potential of this region remains positive,” concluded BHP’s local office.

The FT said BHP Billiton is one of the world’s most valuable miner’s by market capitalisation, and the company is also one of the world’s largest producers of commodities, including iron ore, metallurgical coal, copper and uranium with substantial interests in conventional and unconventional oil and gas and energy coal.