Back to top

Analyst Blog

BHP Billiton Ltd. (BHP - Analyst Report) reported its financial results for fiscal 2013, ended Jun 30, 2013. Earnings per American Depositary Share (ADS) stood at $4.07, down 29.4% from $5.77 per ADS a year-ago. Lower revenues and higher taxes hurt earnings in the fiscal.

Earnings per ADS also missed the Zacks Consensus Estimate of $4.67 by 12.8%.

Revenues: Revenues for fiscal 2013 dropped 8.7% year over year to $66.0 billion from $72.2 billion as a result of a challenging global industry as well as lower prices of commodities.

Revenues also missed the Zacks Consensus Estimate of $68.0 billion by 2.9%.

Underlying earnings before interests and taxes (EBIT) were recorded at $21.1 billion, down 22.4% year over year, as a result of lower commodity prices and inflation.

Production Status: The company saw an improvement in the production of copper, zinc, iron ore, coal, total petroleum products, aluminum and manganese alloy, to name a few, in fiscal 2013. However, the production of silver, nickel and diamonds decreased year over year, over the same period.

BHP Billiton’s Western Australia Iron Ore (WAIO) production reached 187 million tonnes for fiscal 2013.

Balance Sheet: Cash and cash equivalents, at the end of the period, were recorded at $6.1 billion, up from $5.1 billion in the half year ended Dec 31, 2012. Net debt, comprising interest-bearing liabilities, was $29.9 billion, down from $30.4 billion as of Dec 31, 2012.

Cash Flow: Net operating cash flow decreased 16.9% to $27.6 billion year over year. Capital and exploration expenditure totaled $22.9 billion for fiscal 2013, compared with $20.8 billion in fiscal 2012.

BHP Billiton announced a final dividend of 59 cents per share to be paid on Sep 25, 2013, to shareholders of record as on Sep 6, 2013.

Moreover, in line with the company’s strategy to trim its portfolio, BHP divested around $6.5 billion worth of assets in the year, which are either complete or awaiting closures.

Outlook: As on the closure of fiscal 2013, BHP had roughly 18 projects in progress, 70% of which are expected to start production by the end of calendar year 2014. BHP expects the economy to start reviving in the coming quarters, mainly China, thereby, boosting demand and prices. The production at WAIO is expected to increase further to 207 million tonnes by fiscal 2014.

Other Stocks to Consider

Avalon Rare Metals Inc. announced fiscal third-quarter 2013 operating loss of 1 cent per share, compared with the Zacks Consensus Estimate of a loss of 3 cents.

Denison Mines Corp. (DNN - Snapshot Report) announced second-quarter 2013 operating loss of 1 cent per share, compared with the Zacks Consensus Estimate of a loss of 2 cents.

AMCOL International Corporation announced second-quarter 2013 operating earnings of 57 cents per share, beating the Zacks Consensus Estimate of 56 cents by 1.8%.

BHP Billiton currently carries a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 26.54 +6.24%
SUPER MICRO… SMCI 25.98 +6.08%
TESLA MOTOR… TSLA 281.91 +4.53%
BAIDU ADS BIDU 222.49 +3.72%
RTI SURGICA… RTIX 5.50 +3.58%