RESOURCES giant BHP Billiton has suffered a 52 per cent fall in profits over the past 12 months, the biggest drop in 11 years.
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The miner released its results this week showing an underlying profit of US$6.4 billion for 2015.
Despite tough market conditions, the miner increased its dividend by two per cent to US 124 cents per share.
The company also reduced its debt to US$24.6 billion.
NSW Energy Coal, which includes Mt Arthur coal mine near Muswellbrook, reported a decline in revenues over the period, down nine per cent from US$1350 million to US$1225 million.
Underlying Earnings Before Interest and Tax (EBIT) at NSW Energy Coal dropped from US$174 million to US$142 million, a fall of 18 per cent.
Capital expenditure at NSW Energy Coal also declined between 2014 and 2015 and was down from US$170 million to US$121 million, a drop of 28 per cent.
The miner said depreciating currencies have sustained Indonesian and Australian thermal coal exports, prolonging the weak pricing environment.
BHP Billiton conceded China’s import demand has weakened, limiting prospects for price recovery in the near term.
The miner said commodity prices trended down in the 2015 financial year, with prices for most commodities notably lower going into the new financial year.
Thermal coal stood at US$58 a tonne at June 30, 2015 compared to US$74 a tonne 12 months earlier, a fall of 22 per cent.