BHP Billiton H1 Profit Drops

reported a drop in its profit for the first half of the year. BHP Billiton's net profit for the six months fell to US$4.27 billion, compared to US$8.11 billion profit, in the year-ago period. Underlying attributable profit slipped to $5.35 billion in the period, compared to $7.76 billion. Analysts were expecting a profit of $5.1 billion. Underlying profit from iron ore declined 35%, while petroleum earnings dropped 15%. BHP also announced its plans to raise its interim dividend by 5% to US$0.62 per share. BHP Billiton Chief Executive Officer, Andrew Mackenzie said, "These results demonstrate the effectiveness of our strategy and the quality of our people, assets and processes. Despite significant falls in the prices of our main commodities over the last six months, Group margins remain healthy, free cash flow has increased and we have strengthened our balance sheet. We are confident that we can maintain our progressive dividend policy and continue to selectively invest in projects that offer compelling returns." For this year, BHP now projects capital expenditure of $12.6 billion. The company also projects capital spending for 2016 to decline to $10.8 billion. BHP Billiton shares fell 1.84% to close at $49.55 yesterday.