RESTRICTED

 

Release Time IMMEDIATE

Date 3 May 2001

Number 40/01

BHP Third Quarter Profit Report

March 2001

   Quarter ended 31 March
Results Summary

2001

2000

Change %
Revenue ($ million)

- Sales revenue


4 863


5 123


-5.1

- Other revenue

223

302

-26.2

5 086

5 425

-6.2

 
Profit/(loss) from ordinary activities
before tax ($ million)


121


(273)

Net profit/(loss) attributable
to BHP shareholders ($ million)


27


(46)

Basic earnings per share (cents)

1.5

(2.6)

 

Significant Features
  • an $811 million charge to profit for the write-off of the equity investment in HBI Venezuela and the establishment of provisions for related financial obligations to banks and other associated costs;

  • excluding the impact of the HBI Venezuela charge, after tax profit was $838 million reflecting continued strong financial performance;

  • benefits from lower A$/US$ exchange rates;

  • higher prices for petroleum products; and

  • a fully franked final dividend of 26.0 cents per fully paid ordinary share will be paid on 2 July 2001 to shareholders of record on 8 June 2001.

Group Result and Dividend

Quarter Result

The profit after tax attributable to BHP shareholders for the quarter ended 31 March 2001 was $27 million. This was an increase of $73 million compared with the corresponding period  (1).

Basic earnings per share were 1.5 cents compared with (2.6) cents for the corresponding period.

The result for the quarter ended 31 March 2001 includes an $811 million charge to profit for the write-off of the equity investment in HBI Venezuela and the establishment of provisions for related financial obligations to banks and other associated costs. Excluding the impact of the HBI Venezuela charge, the profit after tax attributable to BHP shareholders for the quarter ended 31 March 2001 was $838 million, reflecting a continuation of the strong financial performance of the Group.

The following major factors affected profit after tax attributable to BHP shareholders for the quarter ended 31 March 2001 compared with the corresponding period:

Exchange rates (positive impact of $190 million)

Foreign currency fluctuations net of hedging had a favourable effect of approximately $190 million compared with the corresponding period.

Asset sales (positive impact of $50 million)

Profits from asset sales were approximately $50 million higher than in the corresponding period.

Prices (positive impact of $40 million)

Higher prices, after commodity hedging, for petroleum products increased profit by approximately $115 million compared with the corresponding period. These increases were partly offset by lower prices for steel and copper which decreased profit by approximately $70 million compared with the corresponding period.

New operations (positive impact of $25 million)

Equity accounted profits from QCT Resources Limited (QCT) contributed approximately $20 million for the quarter.

Costs (positive impact of $10 million)

Costs had a favourable impact of approximately $10 million compared with the corresponding period. This was mainly due to lower borrowing costs as a consequence of reduced debt levels. This was partly offset by higher costs arising from industrial action and planned repairs and maintenance shutdowns at Port Kembla steelworks (New South Wales) and coal operations in Queensland.

(1) In this report all references to the corresponding period are to the quarter ended 31 March 2000. The corresponding period has been restated to include items previously treated as abnormal within the determination of profit or loss from ordinary activities.

 

Ceased, Sold and Discontinuing operations (negative impact of $80 million)

Increased equity accounted losses from HBI Venezuela had an unfavourable effect on results of approximately $30 million compared with the corresponding period. The corresponding period included profits from discontinued steel operations of approximately $30 million, and profits of approximately $20 million from the Buffalo oil field (North West Australia), which was sold in the current quarter.

Exploration (negative impact of $30 million)

Exploration expenditure charged to profit was approximately $30 million higher than in the corresponding period mainly reflecting Petroleum activity in the Gulf of Mexico (USA), Latin America and Algeria.

Volumes (negative impact of $20 million)

Lower sales volumes mainly from the Petroleum and Steel businesses decreased profits by approximately $45 million compared with the corresponding period. This was partly offset by higher iron ore shipments which increased profits by approximately $20 million compared with the corresponding period.

Other (positive impact of $50 million)

Reflects higher equity accounted results from Samarco (Brazil), a reduction in the Papua New Guinea withholding tax rate and higher interest income. Combined, these items had a favourable impact on profit of approximately $50 million.

Significant items (negative impact of $205 million)

The decision to cease further investment in HBI Venezuela had a net unfavourable effect of $811 million, comprising the write-off of the equity investment of $322 million (no tax effect), and associated provisions of $489 million after tax for related financial obligations to banks and other legal, direct and indirect costs.

The result for the corresponding period included a net loss of approximately $605 million comprising a loss of approximately $795 million after tax from the write-off of HBI Western Australia, partly offset by an associated tax benefit of approximately $190 million arising from funding arrangements.

 

Year to Date Result

The profit after tax attributable to BHP shareholders for the nine months ended 31 March 2001 was $1,454 million. This was an increase of $290 million or 24.9% compared with the nine months ended 31 March 2000.

Basic earnings per share for the nine months ended 31 March 2001 were 81.5 cents compared with 65.9 cents for the nine months ended 31 March 2000.

Dividend

Directors announced that a fully franked dividend of 26.0 cents per fully paid ordinary share will be paid on 2 July 2001 to shareholders of record on 8 June 2001.

Details of the dividend are included on page 15.

Significant Developments

Significant developments during the quarter included:

The merger will be achieved through a dual listed companies (DLC) structure, allowing the existing primary listings on the London and Australian stock exchanges to be maintained, as will the secondary listing on the Johannesburg Stock Exchange, and an American Depository Receipt listing on the New York Stock Exchange.

Under the terms of the merger one existing Billiton share will have an economic interest equivalent to 0.4842 existing BHP shares. In order to ensure that the economic interest of each BHP and Billiton share is equivalent following implementation of the DLC, there will be a BHP bonus issue to its shareholders at a ratio of 1.0651 additional BHP shares for each BHP share held.

The merger is conditional upon the approval of both BHP and Billiton shareholders and certain regulatory approvals.

 

Segment Results (after tax)

Quarter ended 31 March

2001

2000

$ million

$ million

Change %

Minerals

83

( 496)

Petroleum

547

332

+64.8

Steel

76

139

-45.3

Services (1)

( 1)

Net unallocated interest

( 64)

( 112)

Group and unallocated items

( 615)

89

Net profit/(loss) before
outside equity interests

27

( 49)

Outside equity interests

-

3

Net profit/(loss) attributable to members of the BHP entity


27


( 46)

The total loss on the write-off of the equity investment in HBI Venezuela and the establishment of provisions to cover related financial obligations to banks and other associated costs is $811 million, of which $356 million is reported in Minerals and $455 million is reported in Group and unallocated items.

(1) Following various asset sales and an internal reorganisation the Services segment is no longer reported. Transport and Logistics is now reported in Steel, and Shared Business Services, Insurances and Corporate Services are reported in Group and unallocated items. Comparative data has been adjusted accordingly.

 

Minerals

Minerals’ result for the quarter was a profit of $83 million, an increase of $579 million compared with the corresponding period.

Major factors which contributed to the result were:

These were partly offset by:

The decision to cease further investment in HBI Venezuela was made following a detailed review of the future economic value of the asset. The review identified that, in the context of changed operating and market conditions, BHP does not expect the plant to meet BHP’s operational and financial performance targets necessary to justify any further investment in the project, nor would it satisfy bank completion requirements for project financing. These factors coupled with possible partner funding issues influenced the decision. Excluding the write-off and provisions related to HBI Venezuela, Minerals’ result for the quarter was a profit of $439 million.

The average price booked for copper shipments for the quarter, after hedging and finalisation adjustments, was US$0.76 per pound (2000 - US$0.80). Finalisation adjustments after tax, representing adjustments on shipments settled since 31 December 2000, were $18 million unfavourable (2000 - nil).

Unhedged copper shipments not finalised at 31 March 2001 have been brought to account at the London Metal Exchange (LME) copper spot price on Friday 30 March 2001 of US$0.76 per pound.

Exploration expenditure was $34 million for the quarter (2000 - $26 million) and the charge against profit was $32 million (2000 - $24 million).

Significant developments during the quarter included:

 

Petroleum

Petroleum’s result for the quarter was a profit of $547 million, an increase of $215 million or 64.8% compared with the corresponding period.

Major factors which contributed to the result were:

These were partly offset by:

Oil and condensate production was 10% lower than the corresponding period due to the sale of the Buffalo oil field, natural field decline at Bass Strait, and lower Bruce (UK) production due to shut-ins for repairs and well performance decline. These were partly offset by higher volumes at Griffin (North West Australia) due to infill wells and favourable weather conditions, and at Liverpool Bay (UK) following a major maintenance shutdown in September and October 2000.

Natural gas production was 21% higher than the corresponding period which was largely attributable to higher volumes from Bass Strait due to favourable weather conditions.

LNG production at the North West Shelf (Western Australia) was 7% lower than the corresponding period. This was due to unplanned maintenance on Train 1 in the current period and higher production in the corresponding period to meet shipping schedules.

Exploration expenditure for the quarter was $90 million (2000 - $44 million). Exploration expenditure charged to profit was $76 million (2000 - $39 million).

Significant developments during the quarter included:

 

Steel

Steel’s result for the quarter was a profit of $76 million, a decrease of $63 million or 45.3% compared with the corresponding period.

Major factors which contributed to the result were:

These were partly offset by:

Steel despatches from flat and coated operations were 1.28 million tonnes for the quarter, 11% above the corresponding period:

- Australian domestic despatches were 0.52 million tonnes, 9% above the corresponding period mainly due to the inclusion in the quarter of despatches to OneSteel Limited (previously treated as despatches within the Group);

- Australian export despatches were 0.55 million tonnes, up 22%;

- New Zealand steel despatches were 0.13 million tonnes, down 7%; and

- despatches from overseas plants were 0.09 million tonnes, down 5%.

In addition to the amounts referenced above, the corresponding period included 0.72 million tonnes from discontinued operations.

Significant developments during the quarter included:

 

Net unallocated interest

Net unallocated interest expense was $64 million for the quarter compared with $112 million for the corresponding period. This decrease was mainly due to significantly lower funding levels, increased interest income and higher capitalised interest. These factors were partly offset by higher interest rates in the US and Australia and the unfavourable effect of exchange rate movements.

Group and unallocated items

The result for Group and unallocated items was a loss of $615 million for the quarter compared with a profit of $89 million for the corresponding period.

The result for the quarter included a loss of $455 million after tax representing provisions for related financial obligations to banks and other provisions related to the decision to cease further investment in HBI Venezuela. The corresponding period included a $190 million tax benefit arising from funding arrangements related to HBI Western Australia.

The current quarter also included losses of $114 million after tax from external foreign currency hedging compared with losses of $38 million after tax in the corresponding period. This reflects the lower value of the Australian dollar relative to the US dollar for currency hedging contracts settled in the quarter.

Significant developments during the quarter included:

Outside equity interests

Outside equity interests’ share of net profit is in line with the corresponding period.

 

Consolidated Financial Results - Quarter

Quarter ended 31March

2001

2000

Change

$ million

$ million

%

Revenue from ordinary activities
Sales

4 863

5 123

-5.1

Interest revenue

28

12

+133.3

Other revenue

195

290

-32.8

5 086

5 425

-6.2

Profit from ordinary activitites before depreciation, amortisation and borrowing costs

 

779

 

465



+67.5

Deduct: Depreciation and amortisation

532

582

-8.6

Borrowing costs (1)

126

156

-19.2

Profit/(loss) from ordinary activities before tax

 
121

 
( 273)

(Deduct)/Add: Tax (expense)/benefit attributable to ordinary activities

 
( 94)

 
224

Net profit/(loss)

27

( 49)

Outside equity interests in net profit

-

3

Net profit/(loss) attributable to members of the BHP Entity

 
27

 
( 46)

Average A$/US$ hedge settlement rate

53¢

63¢

(1)After deducting capitalised interest of

$9m

-

 

Consolidated Financial Results - Quarter

Revenue

Sales revenue of $4,863 million decreased by $260 million or 5.1% compared with the corresponding period. This mainly reflects the effect of reduced steel sales volumes following the spin-out of OneSteel Limited and the sale of the US West Coast businesses. This is partly offset by the effect of the significantly lower A$/US$ exchange rate, higher prices for petroleum products, and higher iron ore volumes and prices. Other revenue decreased by $95 million mainly reflecting lower proceeds from asset sales.

Depreciation and Amortisation

Depreciation and amortisation charges decreased by $50 million to $532 million. This mainly reflects depreciation in the corresponding period on businesses that have been sold, and lower copper and petroleum production, partly offset by the unfavourable effect of exchange rate variations.

Borrowing Costs

Borrowing costs decreased by $30 million to $126 million, mainly due to significantly lower funding levels and higher capitalised interest, partly offset by higher interest rates and the unfavourable effect of exchange rate movements.

Tax Expense

Tax expense of $94 million was $318 million higher than for the corresponding period. The charge for the quarter represented an effective tax rate of 77.7% (2000 – 82.0%). This is higher than the nominal Australian tax rate of 34% primarily due to the non tax-effecting of the HBI Venezuela equity investment write-off and overseas exploration expenditure for which no deduction is presently available. These factors were partly offset by non tax-effected capital gains, and the recognition of tax benefits in respect of certain prior year overseas exploration expenditure and operating losses.

 

Consolidated Financial Results – Year to date

Nine months ended 31 March

2001

2000

Change

$ million

$ million

%

Revenue from ordinary activities
Sales

15 369

14 408

+6.7

Interest revenue

75

57

+31.6

Other revenue

396

1 128

-64.9

15 840

15 593

+1.6

Profit from ordinary activitites beforedepreciation, amortisation and borrowing costs

 

4 225

 

3 130

 

+35.0

Deduct: Depreciation andamortisation

1 589

1 569

+1.3

Borrowing costs (1)

438

507

-13.6

Profit from ordinary activities before tax

2 198

1 054

+108.5

(Deduct)/Add: Tax (expense)/benefit attributable to ordinary activities

 
( 715)

 
87

 
Net profit

1 483

1 141

+30.0

Outside equity interests in net profit

( 29)

23

Net profit attributable to members of the BHP Entity

 
1 454

 
1 164

 
+24.9

Average A$/US$ hedge settlement rate

55¢

64¢

(1) After deducting capitalised interest of

$12m

$14m

 

Other Information

Quarter ended
31 March

Quarter ended
31 March

2001

2000

2001

2000

Basic earnings per share (cents) (1)

1.5

(2.6)

81.5

65.9

Diluted earnings per share (cents) (2)

1.5

(2.6)

80.7

65.1

Basic earnings per American Depositary Share (US cents) (3)

1.5

(3.2)

79.6

79.9

(1) Based on net profit after tax attributable to members of the BHP Entity divided by the weighted average number of fully paid ordinary shares. The weighted average number of shares was 1,787,621,914 (2000 - 1,776,451,780) for the quarter and 1,784,963,756 (2000 - 1,766,422,461) for the nine months.
(2) Based on adjusted net profit after tax attributable to members of the BHP Entity divided by the weighted average number of fully paid ordinary shares adjusted for the effect of Employee Share Plan options and Executive Share Scheme partly paid shares to the extent they were dilutive at balance date. 2,819,024 Performance Rights are excluded; these would only be included when an issue of new shares is expected to occur. The weighted average diluted number of shares was 1,787,621,914 (2000 - 1,776,451,780) for the quarter and 1,826,798,058 (2000 - 1,825,631,561) for the nine months.
(3) Each American Depositary Share (ADS) represents two fully paid ordinary shares. Translated at the noon buying rate on Friday 30 March 2001 as certified by the Federal Reserve Bank of New York A$1=US$0.4881 (2000 - A$1=US$0.6062).

Financial Data

The financial data upon which this report has been based complies with the requirements of the Corporations Law, with all applicable Australian Accounting Standards and Urgent Issues Group Consensus Views, and gives a true and fair view of the matters disclosed. The results are unaudited. The Company has a formally constituted Audit Committee of the Board of Directors.

This report is made in accordance with a resolution of the Board of Directors.

Dividend

Directors announced that a fully franked dividend of 26.0 cents per fully paid ordinary share will be paid on 2 July 2001, the same amount as the dividend in the corresponding period.

This franked dividend, together with the unfranked dividend of 25.0 cents per share paid in December 2000, takes the total dividend to 51.0 cents per share, and is unchanged from the previous year.

The record date for payment of the dividend will be 8 June 2001. American Depositary Shares (ADSs) each represent two fully paid ordinary shares and receive dividends accordingly. The record date for ADSs is 7 June 2001.

In the event of any capital reconstruction occurring and becoming effective between the date of the dividend announcement and the record date, the rate per share shall be adjusted such that the total amount of the dividend to be paid on the fully paid shares of the Company shall be equal to the amount that would have been paid had the capital reconstruction not occurred.

Transfer documents will be accepted for registration at the Company’s share registers (and in the case of the ADSs the US Depositary) at the following addresses:

Australia

5th Floor

BHP Petroleum Plaza

120 Collins Street

Melbourne Victoria 3000

UK

Computershare Services plc

The Pavilions

Bridgwater Road

Bedminster Down

Bristol BS13 8AR

USA

Morgan Guaranty Trust Company of New York

Shareholder Services

MS 45 - 02 - 54

150 Royall Street

Canton MA 02021

R V Taylor
Secretary
BHP Limited

 

****

For information contact:

Media Relations: Mandy Frostick – Manager Media Relations
Phone (61 3) 9609 4157
Mobile (61) 419 546 245
E-mail: frostick.mandy.mj@bhp.com
Investor Relations: Dr Robert Porter - Vice President Investor Relations
Phone (61 3) 9609 3540
Mobile (61) 419 587 456

E-mail: porter.robert.r@bhp.com

Francis McAllister- Vice President Investor Relations (North America)
Phone: (1 713) 961 8625
Mobile (1 713) 480 3699
E-mail: mcallister.francis.fr@bhp.com

 

Supplementary Information – Segment Results (Quarter)

Quarterly comparison - March 2001 with March 2000 (1)
Quarter ended 31 March 2001 ($ million)

Revenue(2)

Profit

Other

Dep'n & Borrowing

Net

Sales

revenue

Total

EBITDA(3)

amort'n

costs

EBT(4)

Tax

profit

2347

61

 

2408

Minerals

502

(226)

-

276

(193)

83

1539

111

1650

Petroleum

1016

(234)

-

782

(235)

547

1416

2

1418

Steel

143

(69)

-

74

2

76

-

25

 

25

Net unallocated interest

25

-

(126)

(101)

37

(64)

(152)

28

(124)

Group and unallocated items(5)

(907)

(3)

-

(910)

295

(615)

4863

223

5086

BHP Group

779

( 532)

( 126)

121

( 94)

27

Quarter ended 31 March 2000 ($ million)

Revenue(2)

Profit

Other

Dep'n & Borrowing

Net

Sales

revenue

Total

EBITDA(3)

amort'n

costs

EBT(4)

Tax

profit

1957

220

2177

Minerals

( 499)

(200)

-

( 699)

203

( 496)

1385

16

1401

Petroleum

760

(239)

-

521

( 189)

332

2026

53

2079

Steel

331

(139)

-

192

( 53)

139

53

-

53

Services

-

(2)

-

( 2)

1

( 1)

-

9

9

Net unallocated interest

9

-

( 156)

( 147)

35

( 112)

( 65)

4

(61)

Group and unallocated items(5)

( 136)

(2)

-

( 138)

227

89

5123

302

5425

BHP Group

465

(582)

( 156)

( 273)

224

( 49)

(1) Before outside equity interests.
(2) Revenues do not add to the BHP Group figure due to intersegment transactions.
(3) EBITDA is earnings before borrowing costs, tax, and depreciation and amortisation.
(4) EBT (earnings before tax) is EBIT (earnings before borrowing costs and tax) for all Businesses excluding Net unallocated interest and BHP Group.
(5) Includes consolidation adjustments and unallocated items.

 

Supplementary Information – Segment Results (Quarter)

Quarterly comparison - March 2001 with December 2000 (1)
Quarter ended 31 March 2001 ($ million)

Revenue (2)

Profit

Other

Dep'n & Borrowing

Net

Sales

revenue

Total

EBITDA(3)

amort'n

costs

EBT(4)

Tax

profit

2347

61

2408

Minerals

502

( 226)

-

276

( 193)

83

1539

111

1650

Petroleum

1 016

( 234)

-

782

( 235)

547

1416

2

1418

Steel

143

( 69)

-

74

2

76

-

25

25

Net unallocated interest

25

-

( 126)

( 101)

37

( 64)

(152)

28

(124)

Group and unallocated items(5)

( 907)

( 3)

-

( 910)

295

( 615)

4863

223

5086

BHP Group

779

( 532)

( 126)

121

( 94)

27

 
Quarter ended 31 December 2000 ($ million)

Revenue (2)

Profit

Other

Dep'n & Borrowing

Net

Sales

revenue

Total

EBITDA(3)

amort'n

costs

EBT(4)

Tax

profit

2408

16

2424

Minerals

812

( 221)

-

591

( 165)

426

1729

10

1739

Petroleum

904

( 228)

-

676

( 184)

492

1569

6

1575

Steel

209

( 81)

( 1)

127

( 31)

96

-

20

20

Net unallocated interest

20

-

( 156)

( 136)

23

( 113)

(169)

15

(154)

Group and unallocated items(5)

( 245)

( 3)

-

( 248)

81

( 167)

5278

61

5339

BHP Group

1 700

( 533)

( 157)

1 010

( 276)

734

(1) Before outside equity interests.
(2) Revenues do not add to the BHP Group figure due to intersegment transactions.
(3) EBITDA is earnings before borrowing costs, tax, and depreciation and amortisation.
(4) EBT (earnings before tax) is EBIT (earnings before borrowing costs and tax) for all Businesses excluding Net unallocated interest and BHP Group.
(5) Includes consolidation adjustments and unallocated items.

 

Supplementary Information – Segment Results (Year to date)

Year to date comparison - March 2001 with March 2000 (1)
Nine months ended 31 March 2001 ($ million)

Revenue(2)

Profit

Other

Dep'n & Borrowing

Net

Sales

revenue

Total

EBITDA(3)

amort'n

costs

EBT(4)

Tax

profit

6879

122

7001

Minerals

2 117

( 652)

-

1 465

( 548)

917

4741

128

4869

Petroleum

2 731

( 681)

-

2 050

( 606)

1 444

4989

30

5019

Steel

672

( 247)

( 1)

424

( 96)

328

-

64

64

Net unallocated interest

64

-

( 437)

( 373)

89

( 284)

( 447)

137

(310)

Group and unallocated items(5)

(1 359)

( 9)

-

(1 368)

446

( 922)

15 369

471

15840

BHP Group

4 225

(1 589)

( 438)

2 198

( 715)

1 483

 
Nine months ended 31 March 2000 ($ million)

Revenue(2)

Profit

Other

Dep'n &

Borrowing

Net

Sales

revenue

Total

EBITDA(3)

amort'n

costs

EBT(4)

Tax

profit

6 014

456

6 470

Minerals

669

( 619)

-

50

25

75

3 308

466

3 774

Petroleum

1 849

( 573)

-

1 276

( 367)

909

6 028

99

6 127

Steel

840

( 360)

-

480

( 77)

403

247

77

324

Services

39

( 8)

-

31

( 5)

26

-

38

38

Net unallocated interest

38

-

( 507)

( 469)

112

( 357)

( 187)

84

( 103)

Group and unallocated items(5)

( 305)

( 9)

-

( 314)

399

85

14 408

1 185

15 593

BHP Group

3 130

(1 569)

( 507)

1 054

87

1 141

(1) Before outside equity interests.
(2) Revenues do not add to the BHP Group figure due to intersegment transactions.
(3) EBITDA is earnings before borrowing costs, tax, and depreciation and amortisation.
(4) EBT (earnings before tax) is EBIT (earnings before borrowing costs and tax) for all Businesses excluding Net unallocated interest and BHP Group.
(5) Includes consolidation adjustments and unallocated items.

 

Supplementary Information – Business Results

Quarter ended

$ million

31 March 2001

Sales(1) revenue

EBITDA(2)

Depreciation & amortisation

Capital & (3) investment expenditure

Exploration
(before tax)

Gross (4)

Charged to profit

Minerals
WA

505

245

40

11

Samarco (5)

29

-

Total Iron Ore

505

274

40

11

Queensland (6)

418

207

29

21

New Mexico

186

61

17

18

Illawarra

111

32

9

6

Kalimantan

94

24

14

-

Total Coal

809

324

69

45

WA

53

( 55)

-

12

Venezuela (5)

( 394)

-

Total HBI

53

( 449)

-

12

Escondida

420

190

45

122

Tintaya

39

12

13

21

Ok Tedi

226

39

33

26

Total Copper

685

241

91

169

Ekati

123

77

12

15

Cannington

151

54

11

7

Other businesses (7)

24

26

1

-

Development

3

( 23)

1

1

Intra divisional adjustment

( 14)

( 2)

Divisional activities

8

( 20)

1

-

2 347

502

226

260

34

32

Petroleum (8)
Bass Strait

499

277

39

25

North West Shelf

364

283

25

17

Liverpool Bay

189

155

56

16

Other Businesses

479

332

114

92

Marketing activities

29

( 1)

-

-

Intra-divisional adjustment

-

-

-

-

Divisional activities

( 21)

( 30)

-

-

90

76

1 539

1 016

234

150

90

76

Steel
Flat Products (9)

558

21

36

10

Coated Products

779

97

27

8

Discontinuing Operations

-

-

-

-

Intra-divisional adjustment

( 333)

11

-

Divisional activities

8

( 7)

-

-

Transport and Logistics

404

21

6

( 4)

1 416

143

69

14

-

-

Net Unallocated Interest

25

Group and unallocated items

( 152)

( 907)

3

188

BHP Group

4 863

779

532

612

124

108

(1)

Sales revenues do not add to the BHP Group figure due to intersegment transactions.

(7)

Includes North America Copper mining and smelting operations which ceased during the September 1999 quarter, the Beenup mineral sands operation which was closed in April 1999 and the Hartley Platinum mine which was sold in January 2001.

(2)

EBITDA is earnings before borrowing costs, tax, and depreciation and amortisation.

(8)

Petroleum sales revenue includes: Crude oil $1,010 million, Natural gas $213 million, LNG $156 million, LPG $100 million and Other $60 million.

(3)

Excludes capitalised interest and capitalised exploration.

(9)

Includes North Star BHP Steel.

(4)

Includes capitalised exploration: Minerals $2 million and Petroleum $14 million.

(5)

Equity accounted investments.

(6)

Includes equity accounted results for QCT Resources Limited which was acquired in November 2000.

 

 

Supplementary Information – Business Results

Quarter ended

$ million

31 March 2001

Sales(1) revenue

EBITDA(2)

Depreciation & amortisation

Capital & (3) investment expenditure

Exploration
(before tax)

Gross (4)

Charged to profit

Minerals
WA

315

171

33

4

Samarco (7)

6

-

Total Iron Ore

315

177

33

4

Queensland

365

140

30

7

New Mexico

154

49

12

1

Illawarra

95

17

6

5

Kalimantan

101

16

12

-

Total Coal

715

222

60

13

WA

17

(1 195)

2

6

Venezuela (7)

( 5)

52

Total HBI

17

(1 200)

2

58

Escondida

362

175

44

20

Tintaya

80

15

16

2

Ok Tedi

196

36

26

8

Total Copper

638

226

86

30

Ekati

101

72

5

10

Cannington

103

34

12

3

Other businesses (8)

74

16

-

-

Development

2

( 32)

-

1

Intra divisional adjustment

( 13)

1

-

-

Divisional activities

5

( 15)

2

(3)

1 957

( 499)

200

116

26

24

Petroleum (9)
Bass Strait

495

276

55

26

North West Shelf

318

233

29

9

Liverpool Bay

140

116

49

7

Other Businesses

433

234

106

35

Marketing activities

415

4

-

-

Intra-divisional adjustment

( 334)

-

Divisional activities

( 82)

( 103)

-

-

31

39

1 385

760

239

77

31

39

Steel
Flat Products(10)

539

94

37

13

Coated Products (11)

881

113

30

4

Discontinuing Operations (12)

681

98

65

8

Intra-divisional adjustment

( 431)

13

1

-

Divisional activities (11)

29

( 13)

-

-

Transport and Logistics

327

26

6

1

2 026

331

139

26

-

-

Services

53

-

2

5

Net Unallocated Interest

9

-

Group and unallocated items

( 65)

( 136)

2

1

BHP Group

5 123

465

582

225

57

63

(1)

Sales revenues do not add to the BHP Group figure due to intersegment transactions.

(7)

Equity accounted investments.

(2)

EBITDA is earnings before borrowing costs, tax, and depreciation and amortisation.

(8)

Includes North America Copper mining and smelting operations which ceased during the September 1999 quarter, the Beenup mineral sands operation which closed in April 1999, and the Hartley Platinum mine which was sold in January 2001.

(3)

Excludes capitalised interest and capitalised exploration.

(9)

Petroleum sales revenue includes: Crude oil $996 million, Natural gas $122 million, LNG $118 million, LPG $95 million and Other $54 million.

(4)

Includes capitalised exploration: Minerals $2 million and Petroleum $7 million. (10) Includes North Star BHP Steel.

(5)

Gross exploration for Petroleum of $31 million comprises expenditure of $44 million adjusted by $13 million associated with the Typhoon development which has been reclassified from exploration expenditure to capital expenditure.

(11)

Coated Products' head office costs have been reclassified from Divisional activities into Coated Products.
(6) Includes $2 million Petroleum exploration expenditure previously capitalised, now written off.

(12)

Includes the Long Products business (OneSteel), US steel assets, and strip casting assets.

 

Supplementary information- Risk management

PORTFOLIO RISK MANAGEMENT
Foreign exchange risk management
The table below provides information as at 31 March 2001 regarding the Group's significant derivative financial instruments used to hedge US dollar sales revenues 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

US$ million

US Dollars
Q4 2001 - forwards

0.7052

-

-

270

- collar options

-

0.6572

0.6254

120

- purchased options

-

0.5500

-

40

- sold options

-

-

-

-

Q1 2002 - forwards

0.6954

-

-

300

- collar options

-

0.6678

0.6372

60

- purchased options

-

0.5500

-

30

- sold options

-

-

-

-

Q2 - forwards

0.6933

-

-

270

- collar options

-

0.6837

0.6504

60

- purchased options

-

0.5500

-

60

- sold options

-

-

-

-

Q3 - forwards

0.6848

-

-

270

- collar options

-

0.6807

0.6609

60

- purchased options

-

0.5500

-

30

- sold options

-

-

-

-

Commodity price risk management
The table below provides information as at 31 March 2001 regarding the Group's significant derivative financial instruments that are sensitive to changes in certain commodity prices for the forthcoming twelve months.

Weighted average price

Contract amount

Forwards

Call options

Put options

('000 bbls)

Crude oil
Q4 2001 - forwards

US $22.42 bbl

-

-

2,200

- collar options

-

-

-

-

- purchased options

-

-

-

-

Q1 2002 - forwards

-

-

-

-

- collar options

-

-

-

-

- purchased options

-

-

-

-

Q2 - forwards

-

-

-

-

- collar options

-

-

-

-

- purchased options

-

-

-

-

Q3 - forwards

-

-

-

-

- collar options

-

-

-

-

- purchased options

-

-

-

-

bbls = barrels

STRATEGIC FINANCIAL TRANSACTIONS
As at 31 March 2001 there were no strategic financial derivative transactions outstanding.