BHP Billiton Hints Fiscal Year 2014 Mixed Reports Resolution

The EBITDA report by BHP Billiton has been disclosed to the market. It shows a growth of 2% (from $31.8 billion to $32.4 billion). The data is lower than the approximated $32.7 billion. In contrary, the EBIT record for FY 2014 remained less than the estimated $23.5 billion and agreement of $23.2 billion by 2% or 3%. The result is attributed to the poor performing Copper and Iron Ore segments of the firm. The earnings per share of the period also had a downtrend and preserved its $2.53 value. The EPS is lower than the estimated $2.54 and agreement of $2.58. The given result is credited to the unanticipated lower taxes and interest expenses.

The reports included the 2% decrement in Iron Ore EBIT ($12.1 billion), which is lower compared to analysts’ estimate of $12.4 billion. Copper EBIT record, on the other hand, turned out to be weaker than the approximated S$5.4 billion ($5.1 billion). The year also portrayed a preserved EBIT for Coal of $386 million, which is 29% lower than the projected $543 million. In contrary to unfilled estimations, $5.3 billion Petroleum and Potash EBIT inclined itself with analysts’ projection. The EBIT for nickel, aluminum, and manganese bettered the forecasted $170 million and set in more than the awaited $307 million record.

The net debt of BHP Billiton is revealed to be 3% higher than the anticipated $25.1 million ($25.8 million). The report is credited to weaker working cap influx of $200 million. BHP Billiton’s outflows remained at $3 billion, which is better than the monetary efflux. On the other hand, a $15.2 billion CAPEX was registered, which is not inclined to $15.9 billion.

As a response to the current performance of the company, BHP Billiton reported a program for spinoff and productiveness worth $3.5 billion until the financial period of 2017.

BHP Billiton’s assets, which are inclusive of Manganese, Cannington, and South African Aluminum and Thermal Coal, are declared to be part of the spinoff. Through the program, the shareowners are anticipated to gain 100% of their apportions. The program will reach its finishing point during the fiscal year 2015’s first semester. The new entity will be managed by CFO Brendan Harris and CEO Graham Kerr while they register the entity in stock exchanges of South Africa and Australia.

BHP Billiton is a top-ranking resource company globally. The company is committed in developing enhanced value for shareholders through natural resources discovery, development, and selling.