3rd Quarter Results
BHP Billiton Limited
1 May 2002
BHP Billiton Limited is issuing this announcement to fulfil disclosure
obligations arising from its secondary listing on the London Stock Exchange.
The text of this release is identical to that issued by BHP Billiton Plc earlier.
1 May 2002
Number: 24/02
BHP BILLITON ANNOUNCES THIRD QUARTER GROUP TURNOVER OF
US$4.3 BILLION, EBIT OF US$761 MILLION AND PROFIT OF US$406 MILLION
The BHP Billiton Group today announced financial results for the quarter ended
31 March 2002. Group turnover totalled US$4.3 billion compared to Group turnover
of $US4.7 billion for the corresponding period, a decrease of approximately
US$400 million or 8 per cent.
Earnings Before Interest and Tax (EBIT) was US$761 million for the third
quarter, a decrease of US$209 million or 22 per cent compared to the
corresponding period last year. Attributable profit was US$406 million for the
quarter, a decrease of US$198 million or 33 per cent compared to the quarter
ended March 2001.
The quarter ended March 2001 included an exceptional item, which decreased
profit for the period to US$194 million. As a result, after exceptional items,
the March 2002 profit rose US$212 million or 109 per cent compared to the
corresponding quarter last year.
BHP Billiton CEO and Managing Director Paul Anderson said: 'This is a sound
result in the face of difficult market conditions. Earnings in the Base Metals
business were impacted by our voluntary decision to reduce production, which was
precipitated by our desire to maximise the long-term value of that business.
Although petroleum prices have recently recovered, the March quarter
realisations were significantly below the corresponding period. The Steel
business continued to be impacted by difficult international market conditions.
Despite the tough environment the Aluminium, Carbon Steel, Energy Coal and
Diamonds businesses generated EBIT results that equalled or exceed the
corresponding period.'
EBIT for the March 2002 quarter rose US$31 million or 4 per cent compared to the
quarter ended 31 December 2001. Mr Anderson said: 'The result again demonstrates
the significant benefits of the commodity, market and geographic diversity that
is a distinguishing feature of the BHP Billiton Group.'
Compared with the corresponding quarter last year, lower commodity prices for
base metals, crude oil, aluminium, steel and stainless steel materials impacted
turnover by approximately US$260 million. Stronger prices for metallurgical coal
and energy coal partially offset the downward price movements and positively
impacted turnover by US$80 million for the quarter period.
After adjustment for price-linked costs, the net impact on EBIT of price changes
was approximately US$125 million negative. Favourable foreign currency movements
of US$75 million in part offset this overall net decline in prices.
Basic earnings per share were US6.7 cents for the quarter ended 31 March 2002,
compared with the corresponding period of US10.1 cents before exceptional items
and US3.2 cents after exceptional items.
Growth
During the quarter, BHP Billiton approved the development of the Zamzama gas
field in Pakistan (US$40m) and committed to its first ultra-deepwater
development in the Gulf of Mexico, United States, with the sanctioning of the
Mad Dog oil and gas field (US$335m). An additional investment in two pipeline
systems that will transport hydrocarbons from the Mad Dog and Atlantis fields
(US$100m) was sanctioned to maximise the potential of the Group's holdings in
the Atwater Foldbelt.
In addition, BHP Billiton approved the expansion of the Hillside (South Africa)
aluminium smelter (US$450m) to increase production capacity by 25 per cent and
further lower the unit costs of this world-class asset. The Group also increased
its interest in the Cerrejon Zona Norte (CZN) energy coal mine in Colombia by
acquiring International Colombia Resources Corporation (Intercor), in
conjunction with its partners.
More recently, BHP Billiton announced a joint venture with major customer POSCO
and approved the development of a new iron ore mine at Mining Area C and an
expansion of its Pt Hedland port and rail facilities (US$514m), both in the
Pilbara region of Western Australia.
BHP Billiton Deputy CEO Brian Gilbertson said: 'Since January this year, we have
committed over US$1.4 billion to new growth projects. Our project 'pipeline'
remains a significant value driver for the Group.'
Portfolio Management
During the quarter, BHP Billiton announced the planned closure of the Tower
metallurgical coal colliery in New South Wales (Australia). The withdrawal from
the Ok Tedi copper mining operations in Papua New Guinea was completed with the
transfer of its 52 per cent equity holding to a sustainable development fund
that will operate for the benefit of the Papua New Guinean people.
The demerger of BHP Steel remains on schedule. The scheme document and
prospectus for the demerger is due for release in May with Extraordinary
Shareholders Meetings planned for late June to seek approval for the transaction
from BHP Billiton Limited and Plc shareholders.
BoodarieTM Iron
Force majeure on sales contracts and some supply contracts at the BoodarieTM
Iron plant in north Western Australia remains in place pending finalisation of
plant rectification works underway.
Outlook
Mr Gilbertson said: 'Although there have been some signs of a modest improvement
in the global economic environment, concerns remain about the strength and
sustainability of the recovery. Industry stock levels for a number of our major
commodities remain high and we see little evidence of an increase in demand by
the ultimate customers of many of our products. This situation will limit price
increases for those commodities, at least in the short term, and combined with
the weakening of the US dollar, will continue to impact on our earnings.
'In these challenging conditions, our cash generation remains strong thanks to
the quality of our assets and our well-diversified portfolio. EBITDA for the
quarter was US$1.2 billion (compared to US$1.4 billion in the corresponding
period last year) and US$3.7 billion for the year to date (compared to US$4.1
billion).
Dividend
The BHP Billiton Directors announced a final dividend of 6.5 US cents per fully
paid ordinary share to be paid on 3 July 2002 by BHP Billiton Limited and BHP
Billiton Plc. The BHP Billiton Limited dividend is fully franked for Australian
taxation purposes. The record date for both BHP Billiton Limited and BHP
Billiton Plc shareholders will be 7 June 2002.
As the BHP Billiton Group generates cash flows primarily in US dollars,
dividends are determined and declared in US dollars. The rates of exchange
applicable two business days before the declaration date are used for
conversion. For the July 2002 dividend, conversion from US currency was at
exchange rates applicable on 29 April 2002.
Further details are available in the full BHP Billiton Third Quarter Results
Release.
The financial information included in this release is prepared in accordance
with UK generally accepted accounting principles (GAAP). The third quarter
results are discussed in more detail in the attachment, the BHP Billiton Third
Quarter Report 31 March 2002. The attachment is also prepared in accordance with
UK GAAP, except for information set out on page 32, which contains financial
results prepared in accordance with Australian GAAP and presented in Australian
dollars.
Further news and information can be found on our Internet site:
www.bhpbilliton.com
Australia United Kingdom/South Africa
Dr Robert Porter, Investor Relations Ariane Gentil, Manager Communications
Tel: + 61 3 9609 3540 Mobile: +61 419 587 456 Tel: +44 20 7747 3977 Mobile: + 44 7881 518 715
email: Robert.Porter@bhpbilliton.com email: Ariane.Gentil@bhpbilliton.com
Mandy Frostick, Media Relations
Tel: +61 3 9609 4157 Mobile: +61 419 546 245
email: Mandy.J.Frostick@bhpbilliton.com
United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625 Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com
BHP BILLITON RESULTS FOR THE QUARTER ENDED
31 MARCH 2002
HIGHLIGHTS
• Sound quarterly result in the face of difficult market conditions with
strong cash generation as evidenced by EBITDA of US$1.2 billion.
• Turnover US$4.3 billion, EBITDA US$1.2 billion and attributable profit
US$406 million.
• Financial year to date turnover US$13.2 billion, EBITDA US$3.7 billion and
attributable profit US$1.6 billion.
• Final dividend of 6.5 US cents to be paid on 3 July 2002.
• Commitment to growth - US$2.4 billion in new growth projects sanctioned
since the merger.
• Little evidence of increases in demand by the ultimate customers of many
of our products.
• BHP Steel demerger on track for completion about the middle of this year.
Quarter ended 31 March Nine months ended 31 March
2002 2001 2002 2001
US$M US$M US$M US$M
Group turnover (1) 4 282 4 674 13 176 14 070
EBITDA (1)(2)
- excluding exceptional 1 184 1 397 3 698 4 077
items
- including exceptional 1 184 877 3 698 3 557
items
EBIT (1)(3)
- excluding exceptional 761 970 2 412 2 840
items
- including exceptional 761 450 2 412 2 320
items
Attributable profit
- excluding exceptional 406 604 1 604 1 762
items
- including exceptional 406 194 1 604 1 352
items
Basic earnings per share (US
cents)
- excluding exceptional 6.7 10.1 26.6 29.7
items
- including exceptional 6.7 3.2 26.6 22.8
items
EBITDA interest coverage (times)(4)
- excluding exceptional 15.6 8.6 10.8 8.9
items
- including exceptional 15.6 5.4 10.8 7.7
items
(1) Including the group's share of joint ventures and associates.
(2) EBITDA is profit before net interest, taxation, and depreciation and amortisation.
(3) EBIT is profit before net interest and taxation.
(4) For this purpose, net interest includes capitalised interest and excludes the
effect of discounting on provisions and exchange differences arising from net debt.
The above financial results are prepared in accordance with UK generally
accepted accounting principles (GAAP). Financial results prepared under
Australian GAAP are provided on page 32.
Financial Review
Basis of Preparation of Financial Information
The quarterly financial information presented in this release is provided
voluntarily by the BHP Billiton Group consistent with international best
practice to ensure an informed market. The results are unaudited.
The financial results included in this release are prepared in accordance with
UK generally accepted accounting principles (GAAP). On 29 June 2001, BHP
Billiton Limited and BHP Billiton Plc entered into a Dual Listed Companies (DLC)
merger. Under UK GAAP the DLC merger is accounted for using the merger method of
accounting. The results of the BHP Billiton Limited Group and the BHP Billiton
Plc Group for the period have been combined and the prior period results have
been prepared as if the companies have always been combined. The reporting
currency is US dollars which is the dominant currency in which the BHP Billiton
Group operates.
The combined results for the quarter ended 31 March 2002, prepared in accordance
with UK GAAP, are generally consistent with the combined results under
Australian GAAP as required by the Australian Securities and Investments
Commission (ASIC) in respect of dual listed companies. However, in contrast to
UK GAAP, Australian regulatory requirements do not allow the combination of the
results of the BHP Billiton Limited Group with those of the BHP Billiton Plc
Group for periods prior to consummation of the DLC merger on 29 June 2001.
Financial results prepared in accordance with Australian GAAP are provided on
page 32.
With effect from 1 July 2001, the majority of the BHP Billiton Limited Group's
businesses changed their reporting currencies to US dollars, the functional
currency of the combined BHP Billiton Group. This is consistent with the BHP
Billiton Plc Group and is the basis on which the combined BHP Billiton Group
manages its businesses. Most BHP Billiton commodities are sold in US dollars and
are predominantly destined for export markets.
Except for the effect of the functional currency change, the financial
information has been prepared on the same basis and using the same accounting
policies as were used in preparing the results for the BHP Billiton Group as
presented in the BHP Billiton Plc Group financial statements (but not the BHP
Billiton Limited financial statements) for the year ended 30 June 2001.
The financial information included in this release provides an analysis of the
results for the quarter ended 31 March 2002 compared with the quarter ended 31
March 2001. All references to the corresponding period are to either quarter
ended 31 March 2001 or the nine months ended 31 March 2001 as applicable.
Turnover
Turnover for the quarter, including the group's share of joint ventures and
associates, decreased by 8.4% to US$4,282 million mainly due to the generally
weaker economy compared with the corresponding period. Prices were lower for
crude oil, aluminium, diamonds, nickel, liquefied natural gas (LNG) and
ferrochrome. Turnover was also impacted by lower sales volumes from Base Metals,
Titanium Minerals, Petroleum and Energy Coal businesses. These factors were
partly offset by higher prices for metallurgical coal and energy coal. Turnover,
including the group's share of joint ventures and associates was US$13,176
million, for the nine months ended 31 March 2002, down by US$894 million or 6.4%
compared with the corresponding period.
EBIT
Earnings before interest and tax (EBIT) before exceptional items for the quarter
ended 31 March 2002 was US$761 million, down by US$209 million or 21.5%. EBIT
for the nine months ended 31 March 2002 was US$2,412 million, down by US$428
million or 15.1%.
The following table details the approximate impact of major factors affecting
EBIT for the quarter ended 31 March 2002.
US$M
EBIT for the quarter ended 31 March 2001 970
Change in sales prices ( 180 )
Change in volumes ( 30 )
Price linked costs 55
Inflation on costs ( 40 )
Costs ( 10 )
New and acquired operations 20
Ceased, sold and discontinuing operations ( 60 )
Exchange rates 70
Asset sales ( 30 )
Exploration 15
Other items ( 19 )
EBIT for the quarter ended 31 March 2002 761
Prices
Lower prices for crude oil, aluminium, diamonds, nickel and ferrochrome caused
turnover to fall by approximately US$260 million. Higher metallurgical coal and
energy coal prices offset this by approximately US$80 million.
Volumes
Lower sales volumes resulted in a reduction of EBIT by approximately US$30
million. Volumes were down in the Base Metals, Titanium Minerals, Petroleum, and
Energy Coal businesses, but volumes increased in the Aluminium, Stainless Steel
Materials, EkatiTM and Carbon Steel Materials businesses.
Costs
Net cost reductions (before inflation) increased EBIT by approximately US$45
million compared to the corresponding period. Lower price linked costs for
London Metals Exchange (LME) listed commodities, together with lower royalties
and taxes for petroleum products, resulted in cost reductions totalling
approximately US$55 million. Costs increased during the period due to higher
business development costs and maintenance costs at Petroleum, and operational
issues at Energy Coal operations (South Africa), Metallurgical Coal operations
(Australia) and Chrome operations (South Africa). These factors were partly
offset by lower maintenance expenditure at Hillside (South Africa), lower
transportation and distribution costs at Iron Ore operations (Western Australia)
and at Hunter Valley coal (Australia). Inflation increased costs by
approximately US$40 million.
New and acquired operations
New and acquired operations contributed approximately US$20 million to EBIT
mainly due to increased ownership interest in the Worsley alumina refinery and
the acquisition of an additional 29% interest in the EkatiTM diamond business.
Ceased, sold and discontinuing operations
Ceased, sold and discontinuing operations caused EBIT to reduce by approximately
US$60 million. Lower Steel profits reduced EBIT by approximately US$35 million.
The corresponding period included contribution to EBIT of approximately US$25
million from a higher ownership interest in metallurgical coal (Queensland) and
an EBIT contribution from Indonesian energy coal operations.
Foreign exchange
Foreign currency fluctuations had a favourable effect of approximately US$70
million mainly due to the impact of lower Rand/US$ and A$/US$ exchange rates on
related operating costs, partially offset by the translation effect on provision
balances.
Asset sales
Profits from asset sales were approximately US$30 million lower, mainly due to
the profit on sale of the Buffalo (Australia) oilfield and the Ohanet (Algeria)
farmout in the corresponding period.
Exploration
Exploration charged to profit was approximately US$15 million lower reflecting
mainly higher capitalisation of Petroleum activities in the current period.
Net Interest
The benefits of the re-rating of the Group and lower interest rates, together
with an interest receipt of US$15 million on the successful outcome of the Utah
tax case, reduced net interest from US$160 million to US$75 million in the
quarter.
For the quarter, exchange losses arising from net debt were US$22 million
compared with an exchange gain of US$59 million in the corresponding period,
primarily arising on the quarter end translation of Rand denominated debt of
companies which account in US dollars as their functional currency.
Approximately 1.1 billion of Rand denominated debt was repaid during the
quarter.
For the nine months ended 31 March 2002 net interest payable, including
capitalised interest, before discounting on provisions and exchange differences
arising from net debt, reduced from US$459 million to US$344 million. Exchange
gains arising from net debt were US$220 million compared with US$154 million in
the corresponding period.
EBITDA interest coverage (excluding exceptional items, exchange differences
arising on net debt and discounting on provisions) was 15.6 times for the
quarter and 10.8 times for the nine months, increased from 8.6 times and 8.9
times respectively in the corresponding periods.
Taxation
The tax charge for the quarter ended 31 March 2002 before exceptional items of
US$245 million (2001 - US$264 million) represents an effective tax rate of 37%
(2001 - 31%). This is higher than the nominal tax rate of 30% primarily due to
non tax-effected foreign exchange losses on foreign currency denominated debt
and other functional currency translation adjustments, non tax-effected losses,
non deductible accounting depreciation and amortisation together with secondary
taxes on dividends paid or payable by South African entities. These factors were
partly offset by recognition of prior year tax losses. Excluding the impact of
foreign exchange losses on foreign currency denominated debt and other
functional currency translation adjustments, the effective tax rate for the
quarter ended 31 March 2002 was 32%.
The tax charge for the nine months ended 31 March 2002 (before exceptional
items) of US$647 million (2001 - US$744 million) represents an effective tax
rate of 28% (2001 - 29%). Excluding the impact of exchange differences arising
on net debt and other functional currency translation adjustments, the effective
tax rate for the nine months ended 31 March 2002 was 33%.
Earnings
For the quarter, attributable profit (excluding exceptional items) of US$406
million was US$198 million or 32.8% below the corresponding period. On an
earnings per share basis this equates to 6.7 US cents compared to US 10.1 cents.
There were no exceptional items in the quarter ended 31 March 2002. The
corresponding period included an exceptional item of US$410 million associated
with the write-off of the equity investment in HBI Venezuela and the
establishment of provisions for related financial obligations to banks.
Attributable profit (including exceptional items) rose by US$212 million or
109.3% to US$406 million compared with US$194 million for the corresponding
period, giving an earnings per share of 6.7 US cents compared to 3.2 US cents
respectively.
For the year to date, attributable profit (including exceptional items) rose by
US$252 million or 18.6% to US$1,604 million compared with US$1,352 million for
the corresponding period. This equates to 26.6 US cents compared to US 22.8
cents on an earnings per share basis. There have been no exceptional items for
nine months ended 31 March 2002. The corresponding period included the
exceptional item as mentioned above. Attributable profit (excluding exceptional
items) for the nine months ended 31 March 2002 of US$1,604 million was US$158
million or 8.9% below the corresponding period. Earnings per share was 26.6 US
cents compared to 29.7 US cents in the corresponding period.
Growth
Since 1 January 2002, BHP Billiton has committed approximately US$1.4 billion to
new growth projects, taking the total since the completion of the merger, to
US$2.4 billion.
The table below highlights projects approved since 1 January 2002. All
references to production volumes and capital expenditure are BHP Billiton's
share, unless otherwise stated.
Customer Sector Project Capital Production Completion
Group
Expenditure
US$M
Aluminium Hillside 3 expansion 450 132,000 tonnes per Initial production
annum
South Africa of aluminium metal mid 2004
BHP Billiton 100%
Carbon Steel Mining Area C 186 15 million tonnes per Initial production
Materials
Australia annum of iron ore by late 2003
BHP Billiton 85% 2011 (100%)
Port & capacity 328 Increase in port Late 2004
expansion capacity
Australia to 81 millions of
tonnes per
BHP Billiton 85% annum by 2004 (100%)
Yandi Lump 14 4 million tonnes per Initial production
annum
Australia of iron ore (100%) mid 2002
BHP Billiton 85%
Petroleum Mag Dog oil and gas 335 20,000 boe/day Initial production
field
development late 2004
US
BHP Billiton 23.9%
Gulf of Mexico 100 Pipeline capacities Commissioning
(100%)
transportation system Oil - 450,000 bbls per late 2004
day
US Gas - 500,000 million
BHP Billiton 22-25% standard cubic feet
per day
Zamzama gas field 40 300 million cubic feet Initial production
of
Pakistan gas per day mid 2003
BHP Billiton 47.5%
During the March 2002 quarter, BHP Billiton announced successful exploration
drilling results from the Kairi-2 well in Block 2(c) in Trinidad. The results
from Kairi-2 provided further evidence of offshore Trinidad's major hydrocarbon
development potential. BHP Billiton has made four commercial hydrocarbon
discoveries in the greater Angostura (Trinidad) area (Kairi, Angostura, Canteen
and Aripo) in the past three years and expects to sanction a project for
development of the Block 2(c) resources during this calendar year.
Portfolio Management
Since 1 January 2002, BHP Billiton has announced a number of operational and
portfolio management initiatives. These included:
• BHP Billiton, in conjunction with Anglo American plc and Glencore
International AG, signed an agreement to acquire all of the ownership
interests in International Colombia Resources Corporation from Exxon Mobil
Corporation. The transaction, completed in February 2002, increases BHP
Billiton's interest in the Cerrejon Zona Norte energy coal mining operation
in Colombia to 33.33% from 16.67%.
• BHP Billiton was the successful bidder for 27 hydrocarbon exploration
blocks in the central Gulf of Mexico (US) lease sale in March 2002. Several
blocks provide near-field prospects in the Green Canyon play fairway, where
BHP Billiton has established infrastructure at the Typhoon production
facility. Other leases will replenish the exploration portfolio with
opportunities in the Central Gulf region, which is an area that BHP Billiton
has extensive experience and proprietary knowledge.
• The closure of the Tower metallurgical colliery in Australia by December
2002. Tower produces approximately 1.4 million tonnes of coal per annum.
Following closure, this production will be sourced from BHP Billiton's other
mines in the Illawarra region.
• BHP Billiton completed its withdrawal from the Ok Tedi copper mine in
Papua New Guinea during the quarter. BHP Billiton transferred its 52%
interest to an independent Program Company that will operate for the benefit
of the people of Papua New Guinea. A series of legal releases, indemnities
and warranties have been established which will protect BHP Billiton from
certain legal liabilities for the period after its exit.
The demerger of BHP Steel from BHP Billiton Limited to BHP Billiton Limited
shareholders is on schedule. The scheme document and prospectus for the demerger
is to be released in May 2002 and Extraordinary Shareholders Meetings for BHP
Billiton Limited and BHP Billiton Plc will seek approval for the transaction.
Given shareholder approvals, the public listing of BHP Steel is scheduled for
about the middle of the calendar year. BHP Billiton Plc shareholders will be
compensated for the distribution to the shareholders of BHP Billiton Limited by
way of a bonus issue.
Business Outlook
Although there have been some signs of a modest improvement in the global
economic environment, concerns remain about the strength and sustainability of
the recovery. Industry stock levels for a number of our major commodities remain
high and we see little evidence of an increase in demand by the ultimate
customers of many of our products. This situation will limit price increases for
those commodities, at least in the short term, and combined with the weakening
of the US dollar, will continue to impact our earnings.
In these challenging conditions, our cash generation remains strong thanks to
the quality of our assets and our well-diversified portfolio. EBITDA for the
quarter was US$1.2 billion (compared to US$1.4 in the corresponding period last
year) and US$3.7 billion for the year to date (compared to US$4.1 billion).
Dividends
A final dividend of 6.5 US cents per fully paid ordinary share will be paid on 3
July 2002 by BHP Billiton Limited and BHP Billiton Plc, bringing the total
dividend for the year to 13.0 US cents. In the corresponding period BHP Billiton
Limited shareholders received at dividend of 24.7 Australian cents (adjusted for
bonus issue) per fully paid ordinary share, and BHP Billiton Plc shareholders
received a dividend of 12 US cents per fully paid ordinary share.
The BHP Billiton Limited dividend is fully franked for Australian taxation
purposes.
The timetable in respect of this dividend will be :
Currency conversion 29 April 2002
Last day to trade Johannesburg Stock Exchange (JSE) 31 May 2002
Ex-dividend Johannesburg Stock Exchange (JSE) 3 June 2002
Ex-dividend Paris Bourse Stock Exchange 3 June 2002
Ex-dividend London Stock Exchange (LSE) 5 June 2002
Ex- dividend Australian Stock Exchange (ASX) 5 June 2002
Record 7 June 2002
BHP Billiton Limited and BHP Billiton Plc American Depositary Shares (ADSs) each
represent two fully paid ordinary shares and receive dividends accordingly. The
record date for BHP Billiton Limited ADSs is 6 June 2002 and the record date for
BHP Billiton Plc ADSs is 7 June 2002.
BHP Billiton Plc shareholders registered on the South African section of the
register, will not be able to dematerialise or rematerialise their share
holdings, nor will they be able to effect transfers between the United Kingdom
(UK) register and the South African register between the dates of Monday, 27 May
2002 and Friday, 7 June 2002.
As the BHP Billiton Group generates cashflows primarily in US dollars, dividends
are determined and declared in US dollars. BHP Billiton Limited dividends are
mainly paid in Australian dollars and BHP Billiton Plc dividends are mainly paid
in pounds sterling to shareholders on the UK section of the register and South
African Rand to shareholders on the South African section of the register. The
rates of exchange applicable two business days before the declaration date are
used for conversion. For the July 2002 dividend, conversion from US currency was
at exchange rates applicable on 29 April 2002.
The following table details the exchange rates applicable for conversion of the
final dividend payable on 3 July 2002:
Dividend 6.5 US cents Exchange Rate Dividend per ordinary share in
local currency
Australian cents 0.5436 11.9573
British pence 1.4604 4.4508
South African cents 10.6114 68.9741
New Zealand cents 0.4511 14.4092
Canadian cents 1.5554 10.1101
PORTFOLIO RISK MANAGEMENT
This table summarises the next four quarters as at 31 March 2002 with respect to
the BHP Billiton Group's significant derivative financial instruments used to
hedge Australian dollar costs that are sensitive to changes in exchange rates
for the forthcoming twelve months.
Weighted average A$/US$ exchange rate Contract amounts
Forwards Call options Put options A$ Million US$ Million
US dollars
Q4 2002 - forwards 1.4697 - - 441 300
- collar options - 1.4609 1.5300 73 50
- purchased options - 1.8182 - 18 10
- sold options - - - - -
Q1 2003 - forwards 1.4482 - - 362 250
- collar options - 1.4273 1.4912 43 30
- purchased options - 1.8182 - 55 30
- sold options - - - - -
Q2 2003 - forwards 1.4797 - - 355 240
- collar options - 1.4611 1.5279 15 10
- purchased options - 1.8182 - 55 30
- sold options - - - - -
Q3 2003 - forwards 1.5489 - - 325 210
- collar options - 1.4686 1.5363 29 20
- purchased options - - - - -
- sold options - - - - -
Commodity price risk management
As at 31 March 2002 there were no significant commodity price derivative
financial instruments outstanding.
Strategic financial transactions
As at 31 March 2002 there were no strategic financial derivative transactions
outstanding.
EXCHANGE RATES
The following exchange rates have been utilised in this report:
Quarter ended Quarter ended
31 March 2002 31 March 2001 As at
Versus US dollar average average 31 March 2002 31 March 2001
South African rand 11.52 7.82 11.43 7.99
Australian dollar 1.93 1.88 1.89 2.04
Brazilian real 2.38 2.02 2.32 2.16
Chilean peso 669.7 573.8 664.3 592.9
Colombian peso 2,280 2,256 2,270 2,311
Canadian dollar 1.59 1.53 1.59 1.57
SHARE REGISTARY INFORMATION
Transfer documents will be accepted for registration at each Company's share
registers (and in the case of the ADSs the US Depositary) at the following
addresses:
BHP Billiton Limited BHP Billiton Plc
Australia United Kingdom
5th Floor Lloyds TSB Registrars
BHP Tower The Causeway
600 Bourke Street Worthing
Melbourne Victoria 3000 West Sussex BN99 6DA UK
United Kingdom South Africa
Computershare Services plc Mercantile Registrars Limited
The Pavilions 8th Floor
Bridgewater Road 11 Diagonal Street
Bedminster Down Johannesburg 2000
Bristol BS13 8AR
United States United States
JP Morgan Chase Bank JP Morgan Chase Bank
Shareholder Services Shareholder Services
MS 45 - 02 - 54 MS 45 - 02 - 54
150 Royall Street 150 Royall Street
Canton MA 02021 Canton MA 02021
This report is made in accordance with a resolution of the Board of Directors.
Karen J Wood
Company Secretary
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 600 Bourke Street Melbourne Victoria Registered Office: 1-3 Strand London WC2N 5HA United Kingdom
3000 Telephone +44 20 7747 3800 Facsimile +44 20 7747 3900
Telephone +61 3 9609 3333 Facsimile +61 3 9609 3015
The BHP Billiton Group is headquartered in Australia
BHP Billiton
Results for the Quarter Ended 31 March 2002
Financial Information
Consolidated Financial Results
2002 2001
(1)
excluding exceptional including
exceptional exceptional
Quarter ended items items items
31 March (US$
Millions)
Turnover 4 282 4 674 - 4 674
(including
share of
joint
ventures and
associates)
Less: share (517) (343) - (343)
of joint
ventures and
associates'
turnover
Group 3 765 4 331 - 4 331
turnover
Net operating (2 684) (3 062) - (3 062)
costs
(excluding
depreciation
and
amortisation)
Depreciation (423) (427) - (427)
and
amortisation
(b)
Group 658 842 - 842
operating
profit
Share of 71 79 (520) (441)
operating
profit/(loss)
of joint
ventures and
associates
Operating 729 921 (520) 401
profit
(including
share of
profit of
joint
ventures and
associates)
Income from 10 11 - 11
other fixed
asset
investments
Profit on 22 38 - 38
sale of fixed
assets
Profit before 761 970 (520) 450
net interest
and similar
items
payable, and
taxation
(EBIT) (a)
Net interest
and similar
items payable
- Group (79) (87) - (87)
- Joint (20) (19) - (19)
ventures and
associates
Profit before 662 864 (520) 344
taxation
Taxation (245) (264) 110 (154)
Profit after 417 600 (410) 190
taxation
Equity (11) 4 - 4
minority
interests
Attributable 406 604 (410) 194
profit
EBITDA ((a) + 1 184 1 397 877
(b))
Earnings per 6.7 10.1 3.2
ordinary
share (basic)
(US cents)
(1)
Earnings per 6.7 10.0 3.2
ordinary
share
(diluted) (US
cents) (2)
(1) There were no exceptional in the quarter ended 31 March
2002.
(2) Based on attributable profit divided by the weighted
average number of ordinary shares (ranking for dividend).
The weighted average number of ordinary shares for the
quarter ended 31 March 2002 was 6,020,037,750 (2001 :
6,000,712,157). The weighted average number of shares used
for the purposes of calculating basic earnings per ordinary
share is calculated after deduction of the shares held by
the share repurchase scheme, the Billiton Employee Share
Ownership Trust, adjusted for the BHP Billiton Limited
bonus issue
(3) Based on attributable profit divided by the weighted average diluted number of ordinary
shares. The weighted average diluted number of ordinary shares is calculated by
adjusting the weighted average basic number of ordinary shares for the effect of
options, partly paid shares and the executive share awards which are dilutive at 31
March 2002. Performance Rights are excluded; these would only be included where an
issue of new shares is expected to occur. The weighted average diluted number of
ordinary shares for the quarter ended 31 March 2002 was 6,043,689,658 (2001 :
6,018,476,662).
BHP Billiton
Results for the Nine Months Ended 31 March 2002
Financial Information
Consolidated Financial Results
2001
2002(1)
excluding
exceptional exceptional including
exceptional
Nine months ended 31 March items items items
(US$ Millions)
Turnover (including share 13 176 14 070 - 14 070
of joint ventures and
associates)
Less: share of joint (1 332) ( 942) - ( 942)
ventures and associates'
turnover
Group turnover 11 844 13 128 - 13 128
Net operating costs (8 500) (9 328) - (9 328)
(excluding depreciation
and amortisation)
Depreciation and (1 286) (1 237) - (1 237)
amortisation (b)
Group operating profit 2 058 2 563 - 2 563
Share of operating profit/ 240 200 (520) (320)
(loss) of joint ventures
and associates
Operating profit 2 298 2 763 (520) 2 243
(including share of profit
of joint ventures and
associates)
Income from other fixed 28 24 - 24
asset investments
Profit on sale of fixed 17 50 - 50
assets
Profit/(loss) on sale of 69 3 - 3
subsidiaries
Profit before net interest 2 412 2 840 (520) 2 320
and similar items payable,
and taxation (EBIT) (a)
Net interest and similar
items payable
- Group (117) (267) - (267)
- Joint ventures and (11) (42) - (42)
associates
Profit before taxation 2 284 2 531 (520) 2 011
Taxation (647) (744) 110 (634)
Profit after taxation 1 637 1 787 (410) 1 377
Equity minority interests (33) (25) - (25)
Attributable profit 1 604 1 762 (410) 1 352
EBITDA ((a) + (b)) 3 698 4 077 3 557
Earnings per ordinary 26.6 29.7 22.8
share (basic) (US cents)
(1)
Earnings per ordinary 26.5 29.7 22.9
share (diluted) (US cents)
(2)
(1) There have been no exceptional items for the nine months ended 31 March
2002.
(2) Based on attributable profit divided by the weighted average number of
ordinary shares (ranking for dividend). The weighted average number of ordinary
shares for the nine months ended 31 March 2002 was 6,025,720,488 (2001 :
5,922,946,762). The weighted average number of ordinary shares used for the
purposes of calculating basic earnings per share is calculated after deduction
of the shares held by the share repurchase scheme, the Billiton Employee Share
Ownership Trust, adjusted for the BHP Billiton Limited bonus issue.
(3) Based on attributable profit divided by the weighted average diluted number
of ordinary shares. The weighted average diluted number of shares is calculated
by adjusting the weighted average basic number of ordinary shares for the effect
of options, partly paid shares and the executive share awards which are dilutive
at 31 March 2002. PerformanceRights are excluded; these would only be included
where an issue of new shares is expected to occur. The weighted average diluted
number of ordinary shares for the nine months ended 31 March 2002 was
6,042,472,848 (2001 : 5,938,419,928).
Customer Sector Group Results
The following table provides a summary of the Customer Sector Group results for
the quarter ended 31 March 2002 and the nine months ended 31 March 2002 together
with the respective corresponding periods.
(US$ Million) Quarter ended 31 March Nine months ended 31 March
Turnover (1) EBIT (2) Turnover (1) EBIT (2)
2002 2001 2002 2001 2002 2001 2002 2001
Aluminium 693 773 133 135 2 064 2 067 324 353
Base metals 491 446 52 117 1 317 1 306 120 370
Carbon steel materials 832 834 266 241 2 492 2 437 831 663
Stainless steel 204 229 12 - 449 529 ( 24) 61
materials
Energy coal 388 495 112 109 1 433 1 400 462 266
Exploration, technology 110 67 43 12 277 183 85 38
and new business
Other activities 218 454 13 47 671 675 116 152
Petroleum 687 818 251 419 2 121 2 586 827 1 125
Steel 611 797 10 43 2 091 2 893 79 255
Group and unallocated 125 ( 87) ( 131) ( 153) 173 ( 246) ( 408) ( 443)
items
BHP Billiton Group 4 282 4 674 761 970 13 176 14 070 2 412 2 840
(1) Turnover does not add to the BHP Billiton Group figure due to inter-segment
transactions.
(2) EBIT is earnings before net interest and taxation (excluding exceptional
items).
A detailed explanation of the factors influencing the performance for the
quarter ended 31 March 2002 compared to the corresponding period, of the
Customer Sector Groups is included below on pages 14 to 21. All references to
production volumes are BHP Billiton's share of production unless otherwise
indicated.
Aluminium
(US$ Million) 2002 2001 Change% ('000 tonnes) 2002 2001 Change%
Turnover 693 773 -10.3 Alumina production 996 868 14.7
EBIT 133 135 -1.5 Aluminium production 250 250 0.0
LME aluminium price 1,381 1,574 -12.3
(cash, US$/t, ave)
Aluminium contributed EBIT of US$133 million, a decrease of US$2 million or 1.5%
compared with the corresponding period.
Major factors which affected the comparison of results were:
• a 12% or US$193 per tonne decrease in the average LME price;
partially offset by:
• higher profits from Worsley (Australia) following the acquisition of an
additional 56% interest in January 2001;
• lower LME price linked production costs;
• lower costs at Hillside (South Africa) due to acceptance by underwriters
of insurance claim for losses incurred during the September 2001 power
outage; and
• favourable effect of lower A$/US$ (Australia), Rand/US$ (South Africa) and
Real/US$ (Brazil) exchange rates on related operating costs.
Average aluminium unit cash costs decreased 24% compared to the corresponding
period, mainly due to a decrease in LME linked production costs, reduced
operational costs at Mozal (Mozambique) and Hillside, together with currency
devaluations in South Africa and Brazil.
Alumina unit cash costs decreased by 2% compared to the corresponding period
mainly due to lower operating costs in Suriname and currency devaluations in
Australia and Brazil.
Base Metals
(US$ Million) 2002 2001 Change% 2002 2001 Change%
Turnover 491 446 10.1 Copper production 188 205 -8.3
EBIT 52 117 -55.6 ('000 tonnes)
Realised copper price 0.73 0.77 -5.2
(cash, US$/lb, ave)
Base Metals contributed EBIT of US$52 million, a decrease of US$65 million or
55.6% compared with the corresponding period.
The major factors which affected the comparison of results were:
• a decline in the average realised copper price to US$0.73/lb compared to
US$0.77/lb in the corresponding period;
• lower volumes at Escondida (Chile) and Tintaya (Peru), reflecting the
decision to temporarily reduce production in reaction to the global
deterioration of base metals markets; and
• higher costs due to the write-off of obsolete inventory and assets at
Tintaya (Peru);
partially offset by:
• higher silver volumes at Cannington (Australia), reflecting a change in
production strategy, which resulted in increased mill throughput,
substantially higher silver production and higher average silver head grade;
• lower LME linked treatment and refining costs; and
• inclusion of profits from Antamina (Peru) which commenced commercial
operations in October 2001.
Production of payable copper contained in concentrate decreased by 11% compared
with the corresponding period mainly due to the decision to scale back
production at Escondida due to weak market conditions and to reduce copper
inventory levels. This was partially offset by the commencement of commercial
production at Antamina. Copper cathode production decreased marginally compared
with the corresponding period.
Zinc production was 46,000 tonnes, an increase of 56% compared with the
corresponding period, mainly due to the commencement of commercial production at
Antamina.
Silver and lead production increased by 62% and 38% respectively, mainly
reflecting strong operational performance at Cannington, together with the
commencement of commercial production from Antamina.
Carbon Steel Materials
(US$ Million) 2002 2001 Change% (Million tonnes) 2002 2001 Change%
Turnover 832 834 -0.2 Iron ore production 16.5 15.3 7.8
EBIT 266 241 10.4 Metallurgical coal 9.0 9.5 -5.3
production
Manganese alloy 0.166 0.16 3.8
production
Manganese ore production 0.891 0.917 -2.8
Carbon Steel Materials contributed EBIT of US$266 million, an increase of US$25
million or 10.4% compared with the corresponding period.
Major factors which affected the comparison of results were:
• higher metallurgical coal prices;
• higher coal sales following the Blackwater (Australia) integration and the
impact of industrial action in Queensland in the corresponding period;
• lower port demurrage, rail and stripping costs at Iron Ore (Australia);
and
partially offset by:
• higher costs at metallurgical coal operations in Queensland mainly due to
increased strip ratios, higher royalties following the change in the royalty
regime and a major dragline shutdown at Riverside;
• longwall changeouts, poor roof conditions and provisions associated with
the Tower colliery closure at Illawarra (Australia);
• the impact of the sell down of BHP Billiton's interests in the Central
Queensland Coal Associates (CQCA) and Gregory joint ventures in Queensland
in June 2001; and
• lower sales volumes at Iron Ore due to lower demand from Japanese Steel
mill customers.
West Australian iron ore operations sold 16.9 million wet tonnes (100% terms), a
decrease of 5% compared with the corresponding period mainly due to a reduction
in lump requirements by the Japanese Steel mills. Samarco (Brazil) iron ore
production was 1.6 million tonnes which was 13% lower than the corresponding
period mainly due to lower market demand for pellets.
Queensland coal shipments were 7.2 million tonnes (including 100% interest in
BHP Mitsui Coal, gross of the 20% interest held by equity minority interests,
and 50% interest in the South Blackwater mine), 11% below the corresponding
period. This decrease reflects the impact of the sell down of BHP Billiton's
interest in the CQCA and Gregory joint ventures in June 2001. Excluding this
impact, Queensland coal shipments increased due to the benefits of the
Blackwater integration and the impact of industrial disputes in the
corresponding period. Illawarra coal despatches were 1.6 million tonnes, an
increase of 9% compared with the corresponding period mainly due to increased
spot sales.
On 26 March BHP Billiton announced that it had declared 'force majeure' on sales
contracts and some supply contracts at the Boodarie Iron Plant in north Western
Australia.
The declaration followed suspension of work at the plant following a tube
failure in a gas re-heating furnace.
The investigation into the cause of the tube failure is now complete.
Rectification works are underway. The plant will be brought progressively back
on-line commencing in July 2002.
Stainless Steel Materials
(US$ Million) 2002 2001 Change% ('000 tonnes) 2002 2001 Change%
Turnover 204 229 -10.9 Nickel production 17.8 16.8 6.0
EBIT 12 - Ferrochrome production 201 192 4.7
LME nickel price 2.82 2.97 -5.1
(cash, US$/lb, ave)
Stainless Steel Materials contributed EBIT of US$12 million, compared with a
breakeven EBIT for the corresponding period.
Major factors that affected the comparison of results were:
• increased ferrochrome production in anticipation of improved market
conditions;
• favourable effect of the lower Rand/US$ exchange rate on related operating
costs; and
• favourable impact from nickel due to increases in production, mainly from
the continued ramp-up of Cerro Matoso Line 2, which commenced production on
1 January 2001;
partially offset by:
• lower realised prices for nickel and cobalt by-product, down 5% and 38%
respectively; and
• lower prices for chrome.
Nickel production was 17,800 tonnes, an increase of 6% compared with the
corresponding period mainly reflecting the continued ramp-up of Cerro Matoso
Line 2, which commenced production on 1 January 2001.
Ferrochrome production was 201,000 tonnes, an increase of 5% compared with the
corresponding period. Approximately 20% of ferrochrome production capacity
remains idle in response to weaker market conditions.
Energy Coal
(US$ Million) 2002 2001 Change% (Million tonnes) 2002 2001 Change%
Turnover 388 495 -21.6 Energy coal production 19.2 23.0 -16.5
EBIT 112 109 2.8
Energy Coal contributed EBIT of US$112 million, an increase of US$3 million or
2.8% compared with the corresponding period.
Major factors which affected the comparison of results were:
• a significant increase in export market prices, the benefit of higher
priced longer term contracts offsetting weakness in spot prices increasingly
evident during the current period;
• favourable effect of lower Rand/US$ exchange rates on related operating
costs; and
• inclusion of profits from Cerrejon Zona Norte operations (Colombia);
partially offset by:
• lower export volumes with the weakening of European markets after an
unseasonably warm winter and an influx from non traditional European supply
sources together with lower US domestic sales volumes due to reduced
customer demand;
• higher unit production costs mainly due to lower production volumes
predominantly in South Africa, due to market demand.
Energy coal production was 19.2 million tonnes, a decrease of 16% compared with
the corresponding period. South African production was 13.6 million tonnes, a
decrease of 5% compared with the corresponding period reflecting the divestment
of Matla and Glisa, in the corresponding period, the scaling down of Rietspruit
and lower export production in response to reduced market demand and reduced
demand from Eskom. US production was 3.3 million tonnes, a decrease of 18%
compared with the corresponding period mainly reflecting reduced production at
San Juan Coal Company in response to reduced customer demand.
Exploration, Technology and New Business
(US$ Million) 2002 2001 Change% ('000 carats) 2002 2001 Change%
Turnover 110 67 64.2 EkatiTM diamonds 932 375 148.5
production
EBIT 43 12 258.3
Exploration, Technology and New Business contributed EBIT of US$43 million, an
increase of US$31 million or 258.3% compared with the corresponding period.
Major factors which affected the comparison of results were:
• higher profits from EkatiTM following the acquisition of an additional 29%
interest in June 2001; and
• significantly increased production at EkatiTM reflecting higher ore grade
from the Panda Pit and the commencement of production from the Misery Pit;
partially offset by:
• lower diamond prices mainly due to a general downturn in the global
economy.
EkatiTM diamond production was 932,000 carats, an increase of 557,000 carats or
148.5%, compared to the corresponding period, mainly reflecting the acquisition
of an additional 29% interest, higher carat grade on core production and higher
recoveries of lower quality diamonds.
Other Activities
Other Activities contributed EBIT of US$13 million, a decrease of US$34 million
compared with the corresponding period.
Major factors which affected the comparison of results were:
• lower volumes at titanium minerals operations reflecting softening
markets;
partially offset by:
• favourable effect of lower Rand/US$ exchange rates on related operating
costs;
• operating losses in the corresponding period from HBI Venezuela.
Petroleum
(US$ Million) 2002 2001 Change% 2002 2001 Change%
Turnover 687 818 -16.0 Crude oil and condensate 19.6 19.9 -1.5
EBIT 251 419 -40.1 (Millions bbls)
Natural gas (bcf) 51.1 53.4 -4.3
Average realised oil 20.92 26.81 -22.0
price
(US$/barrel)
Petroleum contributed EBIT of US$251 million, a decrease of US$168 million or
40.1% compared with the corresponding period.
Major factors affecting the comparison of results were:
• lower average realised oil price of US$20.92 per barrel compared to
US$26.81 per barrel in the corresponding period;
• lower average realised LPG price of US$208.16 per tonne compared to
US$296.88 per tonne in the corresponding period;
• reduced crude oil volumes primarily due to natural field decline in the
Laminaria (Australia), Bass Strait (Australia) and Griffin (Australia) oil
fields, partially offset by infill programs in Bass Strait and Griffin;
• lower LPG and natural gas volumes from Bass Strait; and
• sale of the Buffalo oil field in March 2001;
partly offset by:
• inclusion of profits from the Typhoon (US) oilfield and the Zamzama
(Pakistan) field which commenced operations in July 2001 and March 2001
respectively;
Exploration expenditure for the quarter was US$44 million (2001 - US$47
million). Exploration charged to profit was US$28 million (2001 - US$40
million).
Oil and condensate production was 1% lower than the corresponding period due to
natural field declines at Laminaria, Bass Strait and Griffin. Natural field
decline at Griffin was partially offset by an increase in production due to
completion of repairs to Scindian 3 flowline and the Griffin infill program.
Natural field decline at Bass Strait was partially offset by the West Tuna
infill. Production volumes were also lower than the corresponding period as a
result of the sale of Buffalo oil field, offset by Typhoon's start up in July
2001.
Natural gas production was 4.3% lower than the corresponding period due to lower
volumes from Bass Strait as a result of cooler weather in the summer months of
the March 2002 quarter. Lower volumes from Bruce due to lower nominations from
Centrica were partially offset by higher volumes in Pakistan.
Steel
(US$ Million) 2002 2001 Change% ('000 tonnes) 2002 2001 Change%
Turnover 611 797 -23.3 Raw steel 1,251 1,277 -2.0
EBIT 10 43 -76.7 Marketable steel 1,396 1,345 3.8
products
(inc Transport & Logistics) (excluding discontinuing businesses)
Steel contributed EBIT of US$10 million, a decrease of US$33 million or 76.7%
compared with the corresponding period.
Major factors which affected the comparison of results were:
• lower international prices for steel products;
• reduced profits recorded from restructured Transport & Logistics
businesses; and
• higher costs due to melter reline in New Zealand;
partly offset by:
• improved unit costs at Port Kembla steelworks (New South Wales) due to
increased production and cost efficiencies.
Steel despatches from flat and coated operations were 1.4 million tonnes for the
quarter, 8% above the corresponding period:
Group and Unallocated Items
The net costs of Group and Unallocated Items, excluding losses from legacy A$/
US$ currency hedging was US$49 million, a reduction of US$19 million compared to
the corresponding period.
Group and Unallocated Items includes losses on legacy A$/US$ currency hedging of
approximately US$82 million compared with losses of approximately US$85 million
in the corresponding period. These losses mainly reflect the lower value of
hedge settlement rates compared with hedge contract rates for currency hedging
contracts settled during the quarter.
Supplementary Information
Customer Sector Group Results
Quarterly Comparison 31 March 2002 vs 31 March 2001
BHP BILLITON GROUP
Quarter ended 31 March 2002
US$ Million
EBIT (2) EBIT (2)
excluding including
exceptional Exceptional exceptional Exploration Exploration
Turnover (1) items items items Capex (3) gross (5) to profit (6)
(4)
Aluminium 693 133 - 133 68 - -
Base metals 491 52 - 52 92 1 1
Carbon steel 832 266 - 266 74 - -
materials
Stainless steel 204 12 - 12 16 - -
materials
Energy coal 388 112 - 112 252 1 -
Exploration, 110 43 - 43 22 8 8
technology and
new business
Other activities 218 13 - 13 - - -
Petroleum 687 251 - 251 174 44 28
Steel 611 10 - 10 17 - -
Group and 125 ( 131) - ( 131) 9 - -
unallocated items
(6)
BHP Billiton 4 282 761 - 761 724 54 37
Group
Quarter ended 31 March 2001
US$ Million
EBIT (2) EBIT (2) (7)
excluding including
exceptional Exceptional exceptional Exploration Exploration
Turnover (1) items items items Capex (4) gross (5) to profit
Aluminium 773 135 - 135 1 501 - -
Base metals 446 117 - 117 79 4 4
Carbon steel 834 241 - 241 32 3 3
materials
Stainless steel 229 - - - 28 - -
materials
Energy coal 495 109 - 109 15 - -
Exploration, 67 12 - 12 9 14 14
technology and
new business
Other activities 454 47 ( 180) ( 133) 20 - -
Petroleum 818 419 - 419 80 47 40
Steel 797 43 - 43 9 - -
Group and ( 87) ( 153) ( 340) ( 493) 100 - -
unallocated items
(6)
BHP Billiton 4 674 970 ( 520) 450 1 873 68 61
Group
(1) Turnover does not add to the BHP Billiton Group figure due to inter-segment transactions.
(2) EBIT is earnings before net interest and taxation.
(3) Capex in aggregate comprises US$565 million growth and US$159 million sustaining.
(4) Capex includes capital and investment expenditure and excludes capitalised interest
and capitalised exploration.
(5) Includes US$17 million (2001:US$7 million) capitalised exploration.
(6) Includes consolidation adjustments and unallocated items.
(7) Certain items have been restated between customer sector groups.
Customer Sector Group Results
Quarterly Comparison 31 March 2002 vs 31 December 2001
BHP BILLITON GROUP
Quarter ended 31 March 2002
US$ Million
EBIT (2) EBIT (2)
excluding including
exceptional Exceptional exceptional Exploration Exploration
Turnover (1) items items items Capex (3) gross (5) to profit(6)
(4)
Aluminium 693 133 - 133 68 - -
Base metals 491 52 - 52 92 1 1
Carbon steel 832 266 - 266 74 - -
materials
Stainless steel 204 12 - 12 16 - -
materials
Energy coal 388 112 - 112 252 1 -
Exploration, 110 43 - 43 22 8 8
technology and new
business
Other activities 218 13 - 13 - - -
Petroleum 687 251 - 251 174 44 28
Steel 611 10 - 10 17 - -
Group and 125 ( 131) - ( 131) 9 - -
unallocated items
(7)
BHP Billiton Group 4 282 761 - 761 724 54 37
Quarter ended 31 December 2001
US$ Million
EBIT (2) EBIT (2)
excluding including
exceptional Exceptional exceptional Exploration Exploration
Turnover (1) items items items Capex (4) gross (5) to profit(6)
Aluminium 673 77 - 77 41 - -
Base metals 467 17 - 17 195 13 48
Carbon steel 830 273 - 273 55 1 1
materials
Stainless steel 199 ( 24) - ( 24) 17 2 12
materials
Energy coal 507 201 - 201 83 2 -
Exploration, 88 19 - 19 7 22 22
technology and new
business
Other activities 406 59 - 59 4 - -
Petroleum 647 251 - 251 164 69 40
Steel 700 9 - 9 17 - -
Group and 131 ( 152) - ( 152) 15 - -
unallocated items
(7)
BHP Billiton Group 4 533 730 - 730 598 109 123
(1) Turnover does not add to the BHP Billiton Group figure due to inter-segment transactions.
(2) EBIT is earnings before net interest and taxation.
(3) Capex in aggregate comprises US$565 million growth and US$159 million sustaining.
(4) Capex includes capital and investment expenditure and excludes capitalised interest and capitalised
exploration.
(5) Includes US$17 million (Dec 2001:US$30 million)capitalised exploration.
(6) Includes US$nil million (Dec 2001:US$44 million) exploration expenditure previously capitalised, now
written off.
(7) Includes consolidation adjustments and unallocated items.
Customer Sector Group Results - Quarterly Comparison
ALUMINIUM
Quarter ended 31 March 2002
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (3) gross to profit
(4)
Alumina 165 82 27 55 11
Aluminium 366 112 32 80 57
Intra-divisional ( 35) - - - -
adjustment
Third party products 197 ( 2) - ( 2) -
Total 693 192 59 133 68 - -
Quarter ended 31
March 2001
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (4) gross to profit
Alumina 140 79 23 56 1 486
Aluminium 395 108 35 73 15
Intra-divisional ( 34) - - - -
adjustment
Third party products 272 6 - 6 -
Total 773 193 58 135 1 501 - -
(1) EBITDA is earnings before net interest, taxation, and depreciation
and amortisation.
(2) EBIT is earnings before net interest and taxation (excluding
exceptional items).
(3) Capex in aggregate comprises US$57 million growth and US$11
million sustaining.
(4) Capex includes capital and investment expenditure and excludes capitalised interest
and capitalised exploration.
Customer Sector Group Results - Quarterly Comparison
BASE METALS
Quarter ended 31 March 2002
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (3) gross (6) to profit
(4)
Escondida 172 64 25 39 48
Tintaya 17 ( 12) 7 ( 19) 21
Cerro Colorado 55 22 17 5 6
Antamina (7) 68 6 - 6 13
Alumbrera (7) 42 12 - 12 -
Cannington 89 37 6 31 4
Highland Valley 20 ( 3) - ( 3) -
(7)
Other businesses 24 ( 19) - ( 19) -
(8)
Third party 4 - - - -
products
Total 491 107 55 52 92 1 1
Quarter ended 31 March 2001
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (4) gross (6) to profit
(5)
Escondida 223 103 25 78 64
Tintaya 21 7 7 - 11
Cerro Colorado 56 29 16 13 -
Antamina (7) - - - - -
Alumbrera (5) (7) 4 6 - 6 -
Cannington 85 30 6 24 4
Highland Valley 21 3 - 3 -
(7)
Other businesses 35 ( 6) 1 ( 7) -
(8)
Third party 1 - - - -
products
Total 446 172 55 117 79 4 4
(1) EBITDA is earnings before net interest, taxation, and depreciation and amortisation.
(2) EBIT is earnings before net interest and taxation (excluding exceptional items).
(3) Capex in aggregate comprises US$80 million growth and US$12 million sustaining.
(4) Capex includes capital and investment expenditure and excludes capitalised interest and capitalised exploration.
(5) Turnover was net of treatment and refining costs of US$20 million.
(6) Includes US$nil (2001:nil) capitalised exploration.
(7) Equity accounted investments.
(8) Includes Selbaie, Pering and the North America copper mining and smelting operations (which ceased operations
during the September 1999 quarter)
Customer Sector Group Results - Quarterly Comparison
CARBON STEEL MATERIALS
Quarter ended 31 March 2002
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (3) gross to profit
(4)
WA Iron Ore 252 136 15 121 15
Samarco (5) 44 23 - 23 -
Total Iron Ore 296 159 15 144 15
Queensland 320 141 14 127 41
Illawarra 71 13 5 8 5
Total Metallurgical 391 154 19 135 46
Coal
Manganese 109 28 6 22 4
BoodarieTM Iron 44 ( 32) - ( 32) 9
Divisional ( 11) ( 3) - ( 3) -
adjustment (6)
Third party products 3 - - - -
Total 832 306 40 266 74 - -
Quarter ended 31
March 2001
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (4) gross to profit
WA Iron Ore 270 132 22 110 6
Samarco (5) 75 24 - 24 -
Total Iron Ore 345 156 22 134 6
Queensland 299 121 16 105 11
Illawarra 60 17 5 12 3
Total Metallurgical 359 138 21 117 14
Coal
Manganese 99 26 7 19 6
BoodarieTM Iron 29 ( 29) - ( 29) 6
Divisional ( 9) - - - -
adjustment (6)
Third party products 11 - - - -
Total 834 291 50 241 32 3 3
(1) EBITDA is earnings before net interest, taxation, and depreciation and amortisation.
(2) EBIT is earnings before net interest and taxation (excluding exceptional items).
(3) Capex in aggregate comprises US$34 million growth and US$40 million sustaining.
(4) Capex includes capital and investment expenditure and excludes capitalised interest and capitalised exploration.
(5) Equity accounted investment.
(6) Includes intra-divisional activities
Customer Sector Group Results - Quarterly Comparison
STAINLESS STEEL MATERIALS
Quarter ended 31 March 2002
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (3) gross to profit
(4)
Nickel 112 27 19 8 10
Chrome 92 11 7 4 6
Other (5) - - - - -
Third party - - - - -
products
Total 204 38 26 12 16 - -
Quarter ended 31
March 2001
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (4) gross to profit
Nickel 112 30 18 12 19
Chrome 78 ( 2) 7 ( 9) 9
Columbus Stainless 37 ( 1) 2 ( 3) -
Steel
Third party 2 - - - -
products
Total 229 27 27 - 28 - -
(1) EBITDA is earnings before net interest, taxation, and depreciation and amortisation.
(2) EBIT is earnings before net interest and taxation (excluding exceptional items).
(3) Capex in aggregate comprises US$6 million growth and US$10 million sustaining.
(4) Capex includes capital and investment expenditure and excludes capitalised interest
and capitalised exploration.
(5) The Group's remaining interest in Columbus Stainless Steel and the investment in Acerinox SA.
are accounted for as a fixed asset investments.
Customer Sector Group Results - Quarterly Comparison
Customer Sector Group Results - Quarterly Comparison
ENERGY COAL
Quarter ended 31 March 2002
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (3) gross (5) to profit
(4)
Ingwe 212 102 31 71 10
New Mexico 95 27 7 20 12
Hunter Valley 33 18 3 15 31
Indonesia 8 1 - 1 -
Colombia (6) 32 9 - 9 199
Divisional - ( 5) - ( 5) -
activities
Third party 8 1 - 1 -
products
Total 388 153 41 112 252 1 -
Quarter ended 31 March 2001
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (4) gross (5) to profit
Ingwe 264 88 22 66 1
New Mexico 99 32 9 23 10
Hunter Valley 35 8 4 4 4
Indonesia 49 13 7 6 -
Colombia (6) 35 9 - 9 -
Divisional - - - - -
activities
Third party 13 1 - 1 -
products
Total 495 151 42 109 15 - -
(1) EBITDA is earnings before net interest, taxation, and depreciation and amortisation.
(2) EBIT is earnings before net interest and taxation (excluding exceptional items).
(3) Capex in aggregate comprises US$240 million growth and US$12 million sustaining.
(4) Capex includes capital and investment expenditure and excludes capitalised interest
and capitalised exploration.
(5) Includes US$1 million (2001:US$nil)capitalised exploration.
(6) Equity accounted investment.
Customer Sector Group Results - Quarterly Comparison
EXPLORATION, TECHNOLOGY AND NEW BUSINESS
Quarter ended 31 March 2002
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (3) gross (5) to profit
(4)
Ekati 108 71 18 53 21
Exploration and 2 ( 10) - ( 10) 1
Technology
Total 110 61 18 43 22 8 8
Quarter ended 31
March 2001
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (4) gross (5) to profit
Ekati 66 41 6 35 8
Exploration and 1 ( 22) 1 ( 23) 1
Technology
Total 67 19 7 12 9 14 14
(1) EBITDA is earnings before net interest, taxation, and depreciation and amortisation.
(2) EBIT is earnings before net interest and taxation (excluding exceptional items).
(3) Capex in aggregate comprises US$22 million sustaining and nil growth.
(4) Capex includes capital and investment expenditure and excludes capitalised
interest and capitalised exploration.
(5) Includes US$nil (2001:US$nil) capitalised exploration.
OTHER ACTIVITIES
Quarter ended 31 March 2002
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (3) gross to profit
HBI Venezuela (4) - - - - -
Ok Tedi (7) - 3 - 3 -
Other businesses (6) 218 11 1 10 -
Total 218 14 1 13 - - -
Quarter ended 31
March 2001
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (3) gross to profit
HBI Venezuela (4) 5 ( 10) - ( 10) 4
(5)
Ok Tedi 119 23 17 6 14
Other businesses (6) 330 53 2 51 2
Total 454 66 19 47 20 - -
(1) EBITDA is earnings before net interest, taxation, and depreciation
and amortisation.
(2) EBIT is earnings before net interest and taxation (excluding exceptional items).
(3) Capex includes capital and investment expenditure and excludes capitalised
interest and capitalised exploration.
(4) BHP Billiton ceased investment in HBI Venezuela in March 2001.
(5) Equity accounted investment.
(6) Includes Titanium Minerals operations, Integris Metals Inc., the Hartley Platinum mine which was
sold in January 2001 and the Beenup Mineral sands operations which was closed in April 1999.
(7) BHP Billiton ceased investment in Ok Tedi in December 2001, the current period EBIT reflects the
final dividend received.
Customer Sector Group Results - Quarterly Comparison
PETROLEUM
Quarter ended 31 March 2002
US$ Million
Depn & Exploration Exploration
Turnover (1) EBITDA (2) amortisation EBIT (3) Capex (4) gross (6) to profit
(5)
Bass Strait 203 114 22 92 17
North West Shelf 161 120 13 106 12
Liverpool Bay 89 79 36 42 1
Other businesses 217 89 72 19 144
Marketing 17 - - - -
activities
Intra-divisional - - - - -
adjustment
Divisional - ( 8) - ( 8) -
activities
Total 687 394 143 251 174 44 28
Quarter ended 31 March 2001
US$ Million
Depn & Exploration Exploration
Turnover (1) EBITDA (2) amortisation EBIT (3) Capex (5) gross (6) to profit
Bass Strait 264 148 22 126 13
North West Shelf 194 153 14 139 9
Liverpool Bay 100 83 30 53 8
Other businesses 256 180 63 117 50
Marketing 15 - - - -
activities
Intra-divisional - - - - -
adjustment
Divisional ( 11) ( 16) - ( 16) -
activities
Total 818 548 129 419 80 47 40
(1) Petroleum turnover includes: Crude oil US$419 million (2001:US$537 million), Natural gas US$101
million (2001:US$114 million),
LNG US$71 million (2001:US$83 million), LPG US$34 million (2001:US$53 million) and Other US$62 million
(2001:US$31 million).
(2) EBITDA is earnings before net interest, taxation, and depreciation and
amortisation.
(3) EBIT is earnings before net interest and taxation (excluding exceptional items).
(4) Capex in aggregate comprises US$142 million growth and US$32 million sustaining.
(5) Capex includes capital and investment expenditure and excludes capitalised interest
and capitalised exploration.
(6) Includes US$16 million (2001:US$7 million)capitalised exploration.
Customer Sector Group Results - Quarterly Comparison
STEEL
Quarter ended 31 March 2002
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (3) gross to profit
(4)
Flat Products (5) 347 20 17 3 10
Coated Products 374 29 15 14 7
Discontinued - - - - -
operations (6)
Intra-divisional ( 149) 1 - 1 -
adjust
Divisional activities 39 ( 7) 1 ( 8) -
Transport & Logistics - - - - -
Total 611 43 33 10 17 - -
Quarter ended 31 March 2001
US$ Million
Depn & Exploration Exploration
Turnover EBITDA (1) amortisation EBIT (2) Capex (4) gross to profit
Flat Products (5) 343 16 19 ( 3) 5
Coated Products 411 51 14 37 4
Discontinuing 1 - - - -
operations (6)
Intra-divisional ( 176) 5 - 5 -
adjust
Divisional activities 4 ( 4) - ( 4) -
Transport & Logistics 214 11 3 8 -
Total 797 79 36 43 9 - -
(1) EBITDA is earnings before net interest, taxation, and depreciation
and amortisation.
(2) EBIT is earnings before net interest and taxation
(excluding exceptional items).
(3) Capex in aggregate comprises US$nil growth and US$17
million sustaining.
(4) Capex includes capital and investment expenditure and excludes capitalised interest
and capitalised exploration.
(5) Includes North Star BHP Steel.
(6) Includes the Long Products business (OneSteel Limited) which ceased to report results from November
2000 following spin-out.
BHP Billiton Group Financial Results under Australian GAAP
Quarter ended 31 March 2002
A$ Million US$ Million
Revenue from ordinary activities
Sales 7 238 3 750
Other revenue 296 153
7 534 3 903
Profit from ordinary activitites before
depreciation, amortisation and borrowing costs 2 211 1 146
Deduct: Depreciation and amortisation 835 433
Borrowing costs 194 101
Profit from ordinary activities before tax 1 182 612
Deduct: Tax expense attributable to ordinary activities 396 205
Net profit 786 407
Outside equity interests in net profit ( 22) ( 11)
Net profit attributable to members of
combined BHP Billiton Group 764 396
Basic earnings per ordinary share (cents) 12.7 6.5
Basis of Preparation
The results of the BHP Billiton Group, comprising the BHP Billiton Limited Group
and the BHP Billiton Plc Group, for the quarter ended 31 March 2002 have been
prepared in accordance with Australian GAAP and Practice Note 71 'Financial
reporting by Australian entities in dual listed company arrangements' issued by
the Australian Securities and Investments Commission (ASIC).Australian
regulatory requirements do not allow the combination of the results of the BHP
Billiton Limited Group with those of the BHP Billiton Plc Group for periods
prior to consummation of the DLC merger on 29 June 2001.
With effect from 1 July 2001, the majority of the BHP Billiton Limited Group's
businesses changed to US dollars, the functional currency of the combined BHP
Billiton Group.This is consistent with the BHP Billiton Plc Group and is the
basis on which the combined BHP Billiton Group manages its businesses.Most BHP
Billiton commodities are sold in US dollars and are predominantly destined for
export markets.
Except for the effect of the functional currency change, the financial
information has been prepared using the same accounting policies as were used in
preparing the results for the BHP Billiton Limited Group as presented in the BHP
Billiton Limited financial statements for the year ended 30 June 2001.
The results are unaudited.
This information is provided by RNS
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