BHP Billiton Limited
From IntFX
See also: BHP for realtime information.
BHP Billiton, a mineral resources company, is one of the worlds most diversified in terms of geography, commodities and markets. The Company focuses on exploration, development, production and marketing of eight major commodity markets including oil and gas, aluminum, copper, nickel, iron ore, manganese, metallurgical coal and energy coal. It also has exposures to uranium, gold, zinc, lead and silver.
The Company reports its performance through nine business segments:
- Aluminum
- Base Metals
- Diamonds and Specialty Products
- Energy Coal
- Iron Ore
- Manganese
- Metallurgical Coal
- Petroleum
- Stainless Steel Materials
BHP Billiton has primary listings on the Australian and London Stock Exchanges, with a major secondary listing on the Johannesburg Stock Exchange and two American Depositary Receipt listings on the New York Stock Exchange. The global headquarter of the combined BHP Billiton Group is located in Melbourne, Australia. The Company currently employs approximately 38,540 people and has operations in 25 countries.
[edit] History
The Company’s genesis is the merger of dual listed companies of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Plc) completed in June 2001 to form BHP Billiton Group. Although the two entities exist as separate companies, they are governed by the same Board of Directors and management team. Shareholders of both the companies have equal right in the BHP Billiton Group.
[edit] Strategy
BHP Billiton primarily focuses on the upstream extraction of natural resources through high-quality, long-life and low-cost assets with potential for future growth. The Company has also ensured a well diversified portfolio of commodities across geographies to reduce the earnings volatility.
[edit] Financial and operational performance
In 2007, the Company generated revenues of US$47.5 billion an increase of 21.4% over 2006 primarily owing to higher commodity prices. BHP Billiton’s profit margins have also shown continuous improvement over the years. The Company’s adjusted earnings before interest, tax and depreciation (EBITA) margin increased to 44.6% in 2007 from 37.6% in 2005. Similarly, its net profit margin increased to 28.4% in 2007 from 21.3% in 2005. As of September 25, 2007 BHP Billiton’s market capitalization was US$128.9 billion.
Base Metals, Stainless Steel Materials, Petroleum, Aluminum and Iron Ore accounted for over three-fourths of the Company’s revenues in 2007. Similarly, three-fourths of the Company’s adjusted EBITDA was contributed by Base Metals, Stainless Steel Materials, Petroleum and Iron Ore segments.
BHP Billiton production data for 2007 is given below:
| Total petroleum products: | 116.19 million barrels of oil equivalent | declined 1.0% over 2006 |
| Alumina and aluminum: | 5.8 million tons | grew 4.5% over 2006 |
| Copper cathode and concentrate: | 1.3 tons | declined 1.4% over 2006 |
| Nickel: | 0.2 million tons | grew 6.5% over 2006 |
| Iron ore: | 99.4 million tons | grew 2.4% over 2006 |
| Metallurgical coal: | 38.4 million tons | grew 7.8% over 2006 |
| Energy coal | 87.0 million tons | grew 1.5% over 2006 |
