Bad weather hit BHP Billiton's iron ore production while strikes blighted coal output in the first quarter of 2012, but two of its high value, export orientated energy coal operations set new production records.
Iron ore production in the first quarter of 2012 totalled 37.9m tonnes, down 8% on the preceding quarter, as cyclone activity took its toll.
Metallurgical coal output fell 14% from the previous quarter to 7.3m tonnes, as a result of industrial action and heavy rainfall in Queensland, Australia, during the quarter.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The extent to which industrial action will continue to affect production, sales and unit costs is difficult to predict, however with inventories now severely depleted, the impact on future quarters may be significant. Force majeure was declared across all BMA [BHP Billiton Mitsubishi Alliance] sites in April 2012 and remains in place," the group said.
Metallurgical coal output was a tad below the 7.6m tonnes forecast by Credit Suisse.
Production of what BHP Billiton calls energy coal rose 2% from the fourth quarter of 2011 to 52.6m tonnes, with the group's New South Wales Energy Coal and Cerrejon Coal setting production records.
Copper production was more or less unchanged from the preceding quarter at 281,400 tonnes, ahead of Credit Suisse's forecast of 265,000 tonnes.
Production of petroleum products eased to 56.51m barrels of oil equivalent (boe) in the first quarter of 2012 from 57.98m boe in the final quarter of 2011. Credit Suisse had predicted first quarter production would hit the 60m boe level.
The group's jointly-owned Mad Dog oil project in the Gulf of Mexico was offline for the entire quarter and is forecast by the operator to recommence production during the June 2012 quarter.
Bad weather hit BHP Billiton's iron ore production while strikes blighted coal output in the first quarter of 2012.
Iron ore production in the first quarter of 2012 totalled 37.9m tonnes, down 8% on the preceding quarter, as cyclone activity took its toll.
Metallurgical coal output fell 14% from the previous quarter to 7.3m tonnes, as a result of industrial action and heavy rainfall in Queensland, Australia, during the quarter.
"The extent to which industrial action will continue to affect production, sales and unit costs is difficult to predict, however with inventories now severely depleted, the impact on future quarters may be significant. Force majeure was declared across all BMA [BHP Billiton Mitsubishi Alliance] sites in April 2012 and remains in place," the group said.
Metallurgical coal output was a tad below the 7.6m tonnes forecast by Credit Suisse.
Production of what BHP Billiton calls energy coal rose 2% from the fourth quarter of 2011 to 52.6m tonnes, with the group's New South Wales Energy Coal and Cerrejon Coal setting production records.
Copper production was more or less unchanged from the preceding quarter at 281,400 tonnes, ahead of Credit Suisse's forecast of 265,000 tonnes.
Production of petroleum products eased to 56.51m barrels of oil equivalent (boe) in the first quarter of 2012 from 57.98m boe in the final quarter of 2011. Credit Suisse had predicted first quarter production would hit the 60m boe level.
The group's jointly-owned Mad Dog oil project in the Gulf of Mexico was offline for the entire quarter and is forecast by the operator to recommence production during the June 2012 quarter.
Shares in BHP Billiton rose 27.5p to 1,954p in mid-morning tade, having come off their intra-day high of 1,973p.
JH
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
-
Why undersea cables are under threat – and how to protect themUndersea cables power the internet and are vital to modern economies. They are now vulnerable
