BHP Billiton Chief Executive Officer Andrew Mackenzie presented at the Company’s Petroleum investor briefing in Houston, USA last Monday and discussed the exiting outlook for the company’s Petroleum business.
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According to the AFP report published on West Business News, BHP will focus on its “four key pillars”: coal, iron ore, petroleum and copper.
The company’s high quality, diversified resource portfolio and proven strategy have delivered outstanding results for shareholders.
“Our production guidance remains unchanged and we expect to deliver growth of 16%, in copper equivalent terms, over the next two years,” said Mr. Mackenzie.
“The Company’s productivity agenda has the potential to create more value than anything else we do. With all of our operations now on a common information management platform, we can replicate best practice and improve operational performance across the Group. By generating more volume from our existing equipment and lowering unit costs, we will continue to build on the US$2.7 billion reduction in controllable cash costs delivered in the 2013 financial year.”
Mr. Mackenzie further added that the productivity agenda extends to BHP Billiton development projects that are aimed at pursuing a higher rate of return on incremental investment by significantly increasing internal competition for capital and cutting down project costs. The company announced a 25% reduction in capital and exploration expenditure is also planned for this financial year.
“The quality and breadth of our portfolio will also allow us to further simplify our business, while retaining the benefits of diversification. A focus on our four key pillars and their major operations will ultimately deliver higher growth, higher margins and stronger investment returns. We have completed six major transactions delivering proceeds of US$6.5 billion, with US$2.2 billion received this financial year,” said Mr. Mackenzie.
“If we keep getting the basics right and deliver on our commitments, we will substantially increase free cash flow and grow total returns for our shareholders.” BHP Billiton’s net profit dropped 29.5% to US$10.88 billion in the year to June, but the company reportedly remains profitable by finding savings.
