#BHP

 

News Release

Release time	Immediate
Date	2 November 2000
Number	104/00

BHP First Quarter Profit Report

September 2000

Group Result and Dividend

Effect of Change in Financial Year

Following the change in financial year end for the BHP Group from 31 May to 30 June effective 30 June 2000, this Profit Report includes an analysis of the results for the quarter ended 30 September 2000 compared with the quarter ended 30 September 1999. In this report all references to the corresponding period are to the quarter ended 30 September 1999.

Effect of Change in Accounting Standard

Following adoption of revised Australian Accounting Standard AASB1018: Statement of Financial Performance, effective 1 July 2000 items which were previously treated as abnormal are now included in the determination of profit or loss from ordinary activities. Prior period results have been restated where appropriate.

Quarter Result

The profit after tax attributable to BHP shareholders for the quarter ended 30 September 2000 was $715 million. This was a record result and an increase of $181 million or 34% compared with the corresponding period.

Basic earnings per share for the quarter ended 30 September 2000 were 40.1 cents compared with 30.4 cents for the corresponding period.

The following major factors affected profit after tax attributable to BHP shareholders for the quarter ended 30 September 2000 compared with the corresponding period:

Prices (positive impact of $240 million)

Higher prices after commodity hedging for oil and copper, and higher LPG prices, increased profit by approximately $190 million compared with the corresponding period. Higher steel and iron ore prices also improved profit by approximately $50 million compared with the corresponding period.

Exchange rates (positive impact of $100 million)

Foreign currency fluctuations net of hedging had a favourable effect of approximately $100 million compared with the corresponding period.

New operations (positive impact of $45 million)

Profits from the Laminaria/Corallina and Buffalo oil fields (North West Australia) contributed approximately $80 million for the period. These were partly offset by increased losses of approximately $35 million from HBI Western Australia and HBI Venezuela, including the expensing of capital to resolve process and operational difficulties at HBI Western Australia.

 

Volumes (negative impact of $45 million)

Lower petroleum sales volumes at Bass Strait (Victoria) due to natural field decline and lower sales volumes at Escondida (Chile) and Ok Tedi (PNG) due to copper concentrate shipment delays decreased profits by approximately $65 million compared with the corresponding period.

Asset sales (negative impact of $35 million)

Profits from asset sales were approximately $35 million lower than in the corresponding period.

Other (negative impact of $110 million)

The corresponding period included a tax benefit of approximately $110 million arising from finalisation of funding arrangements related to the Beenup mineral sands project.

 

Dividend

Directors announced that an unfranked dividend of 25.0 cents per share will be paid on 6 December 2000.

Details of the half yearly dividend are included on page 11.

 

 

 

Segment Results (after tax)

Change to Business segments

Following various asset sales and an internal reorganisation, the Services segment ceased to be reported from 1 July 2000.

As a consequence, Transport and Logistics is reported in Steel and remaining Services’ activities including Shared Business Services, Insurances and Corporate Services are reported in Group and unallocated items. Comparative data has been adjusted accordingly. 1999 data for Services mainly relates to profits from businesses which have been sold.

				Quarter ended 30 September
									2000		1999
									$ million		$ million		Change %
Minerals									408		303		+34.7
Petroleum									405		212		+91.0
Steel									156		84		+85.7
Services											6
Net unallocated interest									(107)		(116)
Group and unallocated items									(140)		38
Net profit before outside
equity interests									722		527		+37.0
Outside equity interests									(7)		7
Net profit attributable
to members of the BHP entity									715		534		+33.9

 

 

 

 

 

 

Minerals

Minerals’ result for the quarter was a profit of $408 million, an increase of $105 million or 35% compared with the corresponding period.

Major factors which contributed to the result were:

• favourable effect of the lower A$/US$ exchange rate;

• higher average copper prices, net of hedging; and

• higher iron ore prices.

These were partly offset by:

• lower copper concentrate sales volumes at Escondida and Ok Tedi; and

• increased losses from HBI Western Australia, including the expensing of capital to resolve process and operational difficulties.

The average price booked for copper shipments for the period, after hedging and finalisation adjustments, was US$0.89 per pound (1999 - US$0.74). Finalisation adjustments after tax, representing adjustments on prior period shipments settled in the period, were $15 million favourable (1999 - $18 million favourable).

Unhedged copper shipments not finalised at 30 September 2000 which are expected to be finalised after 30 September 2000 but before 1 January 2001 have been brought to account at US$0.90 per pound. Shipments expected to finalise post 1 January 2001 have been brought to account at US$0.91 per pound. The London Metal Exchange (LME) copper spot price on Friday 29 September 2000 was US$0.90 per pound.

Exploration expenditure was $21 million for the quarter (1999 - $15 million) and the charge against profit was $18 million (1999 - $12 million).

Significant developments during the quarter included:

• BHP and Mitsubishi Development Pty Ltd announced a joint cash offer of $1.20 per share for all ordinary shares in QCT Resources Limited (QCT). In October 2000, the offer by the 50/50–owned bidding vehicle, MetCoal Holdings (Qld) Pty Ltd was increased to $1.30 per share. At 1 November 2000, acceptances had reached 88.5%; and

• BHP reached agreement with Falconbridge Limited on the formation of a joint venture which may lead to the development of the Gag Island nickel laterite project in Indonesia. Falconbridge will spend US$75 million to earn a 37.5 per cent interest in the Gag Island nickel project. It is expected the investment will primarily be directed towards completing a Gag Island project feasibility study over the next two years.

 

Petroleum

Petroleum’s result for the quarter was a profit of $405 million, an increase of $193 million or 91% compared with the corresponding period.

Major factors which contributed to the result were:

• higher average realised oil price net of commodity hedging of A$50.49 per barrel (1999 - A$28.59 per barrel), reflecting higher US dollar prices (2000 - US$29.01 per barrel; 1999 - US$18.58 per barrel). The average realised oil price before commodity hedging was US$31.58 per barrel (1999 - US$21.09 per barrel);

• profits from the Laminaria/Corallina and Buffalo oil fields which commenced operations in November 1999 and December 1999 respectively;

• favourable effect of lower A$/US$ exchange rate; and

• higher LPG and LNG prices.

These were partly offset by:

• profits in the corresponding period from the sale of assets; and

• lower Bass Strait oil sales volumes.

Oil and condensate production was 17.3% higher than the corresponding period due to the start-up of the Laminaria/Corallina and Buffalo oil fields and additional oil production from Cossack Pioneer (North West Australia). These were partly offset by lower oil volumes due to natural field decline at Bass Strait and the sale of the Kutubu, Gobe and Moran producing fields (PNG) in December 1999.

Natural gas production was 12.7% higher. This was largely attributable to higher nominations at Bruce (UK), higher volumes from Bass Strait due to weather conditions and increased facility capacity of the US producing properties, partly offset by lower volumes at Liverpool Bay (UK) due to a planned shutdown in September 2000.

Exploration expenditure for the quarter was $80 million (1999 - $54 million). Exploration expenditure charged to profit was $45 million (1999 - $41 million).

Significant developments during the quarter included:

• Letters of Intent were signed with Tokyo Gas Co. Ltd and Toho Gas Co. Ltd of Japan for the sale and purchase of liquefied natural gas (LNG) from the North West Shelf (NWS) in Western Australia. The agreements were signed by the six NWS LNG sellers and cover the supply of LNG for a period of 25 years starting in 2004, building to a volume of one million tonnes per annum (mtpa) by 2006. (BHP share 0.17mtpa);

• approval was granted for the development of the Echo/Yodel gas condensate field on the NWS;

 

• results from the Atlantis-2 appraisal well confirmed a major oil accumulation with a multi-hundred million barrel resource potential. Atlantis-2, located in the Atwater Foldbelt ultra deepwater area of the Gulf of Mexico, encountered oil bearing sands with net pay in excess of 153 metres (500 feet). In October 2000, results of the Atlantis-2 sidetrack well confirmed a lateral extension of the known range of the Atlantis hydrocarbon accumulation of up to 1.6 kilometres (one mile) from the original wellbore, and also confirmed the continuity and quality of the Miocene reservoir sands with a net pay in excess of 92 metres (300 feet true vertical thickness);

• BHP Petroleum acquired a 4.95 per cent interest in the Genesis field in the deep water Gulf of Mexico; and

• a Risk Service Contract was signed with the Algerian national oil company, SONATRACH, for the development of four gas/condensate reservoirs in the Ohanet region of Algeria.

 

Steel

Steel’s result for the quarter was a profit of $156 million, an increase of $72 million or 86% compared with the corresponding period.

Major factors which contributed to the result were:

• higher international steel prices and the favourable effect of exchange rate movements;

• improved performance from Asian businesses; and

• the sale of the US West Coast steel businesses and the closure of the Newcastle primary operations which made losses in the corresponding period.

Steel despatches from continuing flat and coated operations were 1.24 million tonnes for the quarter, 4.2% above the corresponding period:

 

- Australian domestic despatches were 0.49 million tonnes, down 5.8%;

- Australian export despatches were 0.54 million tonnes, up 22.7%;

- New Zealand steel despatches were 0.13 million tonnes, down 13.3%; and

- despatches from overseas plants were 0.08 million tonnes, in line with the

corresponding period.

Steel despatches from discontinuing operations for the quarter were 0.53 million tonnes, 32.9% below the corresponding period. This was primarily due to the sale of the US West Coast businesses in the fourth quarter of fiscal 2000 and reduced export despatches of long products following the closure of Newcastle primary operations in fiscal 2000.

 

 

Significant developments included:

• the signing of a Memorandum of Understanding with e-STEEL Corporation to build and operate a customised, steel-based B2B e-commerce network. The network will utilise e-STEEL’s proprietary STEELDIRECT^TM technology platform, enabling buyers and sellers to execute steel transactions on-line. It will initially be open to BHP Steel’s customers in Australia, prior to expansion into key international markets; and

• in October 2000, the schemes of arrangement enabling the spin-out of OneSteel Limited became effective leaving BHP Steel as the Australasian region’s principal flat products steel producer and marketer. From 1 November 2000, BHP Steel will cease reporting results for OneSteel Limited.

 

Net unallocated interest

Net unallocated interest expense was $107 million for the quarter compared with $116 million for the corresponding period. This decrease was mainly due to significantly lower funding levels, partly offset by higher interest rates in the US and Australia, lower capitalised interest and the unfavourable effect of exchange rate movements.

 

Group and unallocated items

The result for Group and unallocated items was a loss of $140 million for the quarter compared with a profit of $38 million for the corresponding period. The corresponding period included a tax benefit of $112 million arising from finalisation of funding arrangements related to the Beenup mineral sands project.

The result for the quarter included losses of $86 million after tax from external foreign currency hedging compared with losses of $32 million after tax in the corresponding period.

On 18 October 2000, following appeal by the Australian Taxation Office (ATO) the Full Bench of the Federal Court ruled in favour of the ATO concerning the deductibility of financing costs paid to General Electric Company in connection with the acquisition of the Utah Group in the early 1980s. BHP is seeking leave to appeal to the High Court of Australia. The Company disclosed a contingent liability of $211 million, as at 30 June 2000, in the 2000 Annual Report. No adjustments will be made to the Group accounts pending finalisation of this matter.

 

Outside equity interests

Outside equity interests’ share of operating profit increased mainly due to adjustments in the corresponding period attributable to minority shareholders of the Moura coal mine following its sale in August 1999.

 

 

Consolidated Financial Results

									Quarter ended 30 September
									2000		1999	Change
									$ million		$ million	%
	Revenue from ordinary activities
			Sales						5 228		4 625	+13.0
			Interest revenue						22		17	+29.4
			Other revenue						165		339	-51.3
									5 415		4 981	+8.7
	Profit from ordinary activitites before
	depreciation, amortisation and borrowing costs								1 746		1 291	+35.2
	Deduct: Depreciation and amortisation								524		480	+9.2
	Borrowing costs (1)								155		165	-6.1
	Profit from ordinary activities before tax								1 067		646	+65.2
	Deduct: Tax expense attributable to ordinary activities								345		119	+189.9
	Net profit								722		527	+37.0
	Outside equity interests in net profit								(7)		7
	Net profit attributable to members of the BHP Entity								715		534	+33.9
	Average A$/US$ hedge settlement rate								57¢		65¢
	(1)		Excludes capitalised interest of						$1m		$9m

 

 

 

 

Consolidated Financial Results

Revenue

Sales revenue of $5,228 million increased by $603 million or 13.0% compared with the corresponding period. This mainly reflects the effect of the lower A$/US$ exchange rate, and higher crude oil, copper, LPG and LNG prices. Other revenue, including interest income, decreased by $169 million mainly reflecting lower proceeds from asset sales. Total revenue increased by $434 million to $5,415 million.

 

Depreciation and Amortisation

Depreciation and amortisation charges increased by $44 million to $524 million. This mainly reflects depreciation on recently commissioned operations and the unfavourable effect of exchange rate variations, partly offset by depreciation in the corresponding period on businesses now sold.

 

Borrowing Costs

Borrowing costs decreased by $10 million to $155 million, mainly due to significantly lower funding levels, partly offset by higher interest rates in the US and Australia, lower capitalised interest and the unfavourable effect of exchange rate movements.

 

Tax Expense

Tax expense of $345 million for the quarter represented an effective tax rate of 32.3% (1999 – 18.4%). This is lower than the nominal Australian tax rate of 34% primarily due to recognition of tax benefits in respect of certain prior year overseas exploration expenditure, partly offset by overseas exploration expenditure for which no deduction is presently available, and non-deductible interest expense on preference shares.

 

 

Statutory Information

													Quarter ended
													30 September
													2000		1999
	Basic earnings per share (cents) (1)												40.1		30.4
	Diluted earnings per share (cents) (2)												39.5		29.7
	Basic earnings per American Depositary Share (US cents) (3)												43.4		39.7
(1)		Based on net profit after tax attributable to members of the BHP Entity divided by the weighted average
		number of fully paid ordinary shares. The weighted average number of shares was 1,782,544,570
		(1999 - 1,758,133,014).
(2)		Based on adjusted net profit after tax attributable to members of the BHP entity divided by the weighted
		average number of fully paid ordinary shares adjusted for the effect of Employee Share Plan options,
		Executive Share Scheme partly paid shares and Performance Rights to the extent they were dilutive at
		balance date. The weighted average diluted number of shares was 1,827,116,707 (1999 - 1,825,529,114).
(3)		Each American Depositary Share (ADS) represents two fully paid ordinary shares. Translated at the
		noon buying rate on Friday 29 September 2000 as certified by the Federal Reserve Bank of New York

 

 

 

 

Financial Data

The financial data upon which this report has been based complies with the requirements of the Corporations Law, with all applicable Australian Accounting Standards and Urgent Issues Group Consensus Views, and gives a true and fair view of the matters disclosed. The results are unaudited. The Company has a formally constituted Audit Committee of the Board of Directors.

This report is made in accordance with a resolution of the Board of Directors.

 

Half Yearly Dividend

Directors announced that a half yearly unfranked dividend of 25.0 cents per fully paid ordinary share will be paid on 6 December 2000, the same as the dividend in the corresponding period.

The record date for payment of the dividend will be 17 November 2000. American Depositary Shares (ADSs) each represent two fully paid ordinary shares and receive dividends accordingly. The record date for ADSs is 16 November 2000.

Transfer documents will be accepted for registration at the Company’s share registers (and in the case of the ADSs the US Depositary) at the following addresses:

 

Australia 5th Floor

BHP Petroleum Plaza

120 Collins Street

Melbourne Victoria 3000

UK Computershare Services plc

The Pavilions

Bridgwater Road

Bedminster Down

Bristol BS13 8AR

USA Morgan Guaranty Trust Company of New York

Shareholder Services

MS 45 - 02 - 54

150 Royall Street

Canton MA 02021

 

 

 

 

R A St John

Company Secretary

BHP Limited

 

 

 

 

****

For information contact:

Media Relations: Mandy Frostick – Manager Media Relations

Phone (61 3) 9609 4157

Mobile (61) 419 546 245

E-mail: [email protected]

Investor Relations: Robert Porter - Vice President Investor Relations

Phone (61 3) 9609 3540

Mobile (61) 419 587 456

E-mail: [email protected]

Investor Relations Houston: Francis McAllister - Vice President Investor Relations

Phone (1 713) 961 8625

E-mail: [email protected]

 

 

 

 

 

Supplementary Information – Segment Results

Quarterly comparison - September 2000 with September 1999 (1)
Quarter ended 30 September 2000 ($ million)
	Revenue(2)				Profit
		Other				Dep'n &	Borrowing			Net
	Sales	revenue	Total		EBITDA(3)	amort'n	costs	EBT(4)	Tax	profit
	2 124	45	2 169	Minerals	803	(205)	-	598	(190)	408
	1 473	7	1 480	Petroleum	811	(219)	-	592	(187)	405
	2 004	22	2 026	Steel	320	(97)	-	223	(67)	156
	-	19	19	Net unallocated interest	19	-	(155)	(136)	29	(107)
	(126)	94	(32)	Group and unallocated items(5)	(207)	(3)	-	(210)	70	(140)
	5 228	187	5 415	BHP Group	1 746	(524)	(155)	1 067	(345)	722
Quarter ended 30 September 1999 ($ million)
	Revenue(2)				Profit
		Other				Dep'n &	Borrowing			Net
	Sales	revenue	Total		EBITDA(3)	amort'n	costs	EBT(4)	Tax	profit
	2 071	142	2 213	Minerals	657	(210)	-	447	(144)	303
	983	215	1 198	Petroleum	463	(150)	-	313	(101)	212
	2 048	23	2 071	Steel	243	(112)	-	131	(47)	84
	115	-	115	Services	12	(3)	-	9	(3)	6
	-	11	11	Net unallocated interest	11	-	(165)	(154)	38	(116)
	(69)	-	(69)	Group and unallocated items(5)	(95)	(5)	-	(100)	138	38
	4 625	356	4 981	BHP Group	1 291	(480)	(165)	646	(119)	527
(1) Before outside equity interests.
(2) Revenues do not add to the BHP Group figure due to intersegment transactions.
(3) EBITDA is earnings before borrowing costs, tax, and depreciation and amortisation.
(4) EBT (earnings before tax) is EBIT (earnings before borrowing costs and tax)
for all Businesses excluding Net unallocated interest and BHP Group.
(5) Includes consolidation adjustments and unallocated items.

 

 

 

 

Supplementary Information – Segment Results

Quarterly comparison - September 2000 with June 2000 (1)
Quarter ended 30 September 2000 ($ million)
	Revenue (2)				Profit
		Other				Dep'n &	Borrowing			Net
	Sales	revenue	Total		EBITDA(3)	amort'n	costs	EBT(4)	Tax	profit
	2 124	45	2 169	Minerals	803	(205)	-	598	(190)	408
	1 473	7	1 480	Petroleum	811	(219)	-	592	(187)	405
	2 004	22	2 026	Steel	320	(97)	-	223	(67)	156
	-	19	19	Net unallocated interest	19	-	(155)	(136)	29	(107)
	(126)	94	(32)	Group and unallocated items(5)	(207)	(3)	-	(210)	70	(140)
	5 228	187	5 415	BHP Group	1 746	(524)	(155)	1 067	(345)	722
Quarter ended 30 June 2000 ($ million)
	Revenue (2)				Profit
		Other				Dep'n &	Borrowing			Net
	Sales	revenue	Total		EBITDA(3)	amort'n	costs	EBT(4)	Tax	profit
	2 094	88	2 182	Minerals	622	(208)	-	414	(53)	361
	1 466	141	1 607	Petroleum	802	(260)	-	542	(165)	377
	2 232	574	2 806	Steel	(16)	(97)	(1)	(114)	(6)	(120)
	49	68	117	Services	70	(2)	-	68	-	68
	-	22	22	Net unallocated interest	22	-	(156)	(134)	19	(115)
	(109)	3	(106)	Group and unallocated items(5)	(226)	(4)	-	(230)	67	(163)
	5 464	896	6 360	BHP Group	1 274	(571)	(157)	546	(138)	408
(1) Before outside equity interests.
(2) Revenues do not add to the BHP Group figure due to intersegment transactions.
(3) EBITDA is earnings before borrowing costs, tax, and depreciation and amortisation.
(4) EBT (earnings before tax) is EBIT (earnings before borrowing costs and tax)
for all Businesses excluding Net unallocated interest and BHP Group.
(5) Includes consolidation adjustments and unallocated items.

 

Supplementary Information – Business Results

Quarter ended				$ million
30 September 2000				(1) Sales revenue	(2) EBITDA			Depreciation & amortisation			(3) Capital & investment expenditure		Exploration (before tax)
													(4) Gross		Charged to profit
Minerals
	WA			459	227			31			7
	Samarco (5)				13						-
	Total Iron Ore			459	240			31			7
	Queensland			412	177			29			5
	New Mexico			178	53			12			3
	Illawarra			100	27			8			1
	Kalimantan			91	15			13			-
	Total Coal			781	272			62			9
	WA			14	(78)			-			22
	Venezuela (5)				(10)						72
	Total HBI			14	(88)			-			94
	Escondida			379	211			44			26
	Tintaya			63	19			11			5
	Ok Tedi			174	37			29			-
	Total Copper			616	267			84			31
	Ekati			113	79			11			7
	Cannington			114	52			12			6
	Other businesses (6)			30	8			1			-
	Development			1	(15)			2			-
	Intra divisional adjustment			(6)	1
	Divisional activities			2	(13)			2			1
				2 124	803			205			155		21		18
Petroleum (7)
	Bass Strait			551	307			46			29
	North West Shelf			320	239			27			15
	Liverpool Bay			114	78			33			21
	Other Businesses			486	272			113			149
	Marketing activities			91	3			-			-
	Intra-divisional adjustment			-	-
	Divisional activities			(89)	(88)			-			-		80		45
				1 473	811			219			214		80		45
Steel
	Flat Products (8)			640	130			37			9
	Coated Products			885	132			27			3
	Discontinuing Operations (9)			670	66			28			14
	Intra-divisional adjustment			(641)	(21)
	Divisional activities			42	(13)			(1)			-
	Transport and Logistics			408	26			6			5
				2 004	320			97			31		-		-
Net Unallocated Interest
Group and unallocated items				(126)	(207)			3			17
BHP Group				5 228	1 746			524			417		101		63
(1)	Sales revenues do not add to the BHP Group figure due to intersegment transactions.								Includes North America Copper mining and smelting operations which ceased during the September 1999 quarter, Beenup mineral
(2)	EBITDA is earnings before borrowing costs, tax, and depreciation and amortisation.								Platinum mine where operations have been suspended pending
(3)	Excludes capitalised interest and capitalised exploration.								Petroleum sales revenue includes: Crude oil $1 089 million, Natural gas $111 million, LNG $128 million, LPG $95 million and Other $50 million.
(4)	Includes capitalised exploration: Minerals $3 million and Petroleum $35 million.							(8)	Includes North Star BHP Steel.
(5)	Equity accounted investments.							(9)	Includes the Long Products business (OneSteel).

 

 

 

Supplementary Information – Business Results

	Quarter ended				$ million
	30 September 1999					(1) Sales revenue		(2) EBITDA			Depreciation & amortisation			(3) Capital & investment expenditure		Exploration (before tax)
																Gross (4)		Charged to profit
	Minerals
		WA				352		159			34			5
		Samarco (5)						10						-
		Total Iron Ore				352		169			34			5
		Queensland				363		139			44			20
		New Mexico				148		48			11			1
		Illawarra				90		18			8			2
		Kalimantan				83		23			11			1
		Total Coal				684		228			74			24
		WA				20		(47)			3			8
		Venezuela (5)						(1)						4
		Total HBI				20		(48)			3			12
		Escondida				384		203			39			6
		Tintaya				49		12			11			3
		Ok Tedi				188		65			25			-
		Total Copper				621		280			75			9
		Ekati				103		75			10			-
		Cannington				108		35			11			2
		Other businesses (6)				234		5			1			8
		Development				4		(18)			2			(4)
		Intra divisional adjustment				(12)		-			-			-
		Divisional activities				(43)		(69)			-			(4)
						2 071		657			210			52		15		12
	Petroleum (7)
		Bass Strait				425		227			50			49
		North West Shelf				202		148			22			16
		Liverpool Bay				89		59			34			6
		Other Businesses				149		112			44			38
		Marketing activities				333		(2)			-			-
		Intra-divisional adjustment				(144)		-
		Divisional activities				(71)		(81)			-			-		54		41
						983		463			150			109		54		41
	Steel
		Flat Products(8)				540		68			35			11
		Coated Products				874		96			30			6
		Discontinuing Operations (9)				982		55			42			12
		Intra-divisional adjustment				(697)		4			-			-
		Divisional activities				27		(8)			(1)			-
		Transport and Logistics				322		28			6			1
						2 048		243			112			30		-		-
	Services					115		12			3			1
	Net Unallocated Interest							11
	Group and unallocated items					(69)		(95)			5				-
	BHP Group					4 625		1 291			480			192		69		53
(1)		Sales revenues do not add to the BHP Group figure due to intersegment transactions.								Petroleum sales revenue includes: Crude oil $602 million, Natural gas $79 million, LNG $83 million, LPG $64 million
(2)		EBITDA is earnings before borrowing costs, tax, and depreciation and amortisation.							(8)		Includes North Star BHP Steel. Includes the Long Products business (OneSteel), assets, Lifting Products and strip casting assets.
(3)		Excludes capitalised interest and capitalised exploration.
(4)		Includes capitalised exploration: Minerals $3 million and Petroleum $13 million.
(5)		Equity accounted investments.
(6)		Includes North America Copper mining and smelting operations which ceased during the September 1999 quarter, Beenup mineral sands operation which closed in April 1999, and Hartley Platinum mine where operations have been suspended pending conditional sale.

 

 

 

 

Restated Financial Information

The information on pages 17 to 22 has been included to provide selected fiscal 2000 comparative data which reflects the change in Business segments described on page 4. Details for the quarter ended 30 September 1999 and the quarter ended 30 June 2000 are provided on pages 13, 14 and 16.

								Year ended 30 June 2000
								$ million
								Sep 99		Dec 99					Mar 00		June 00
								Quarter 1		Quarter 2		Half Year			Quarter 3		Quarter 4		Full Year
	Minerals							303		268		571			(496)		361		436
	Petroleum							212		365		577			332		377		1 286
	Steel							84		180		264			139		(120)		283
	Services							6		21		27			(1)		68		94
	Net unallocated
	interest							(116)		(129)		(245)			(112)		(115)		(472)
	Group and
	unallocated items							38		(42)		(4)			89		(163)		(78)
	Net profit/(loss) before
	outside equity interests							527		663		1 190			(49)		408		1 549
	Outside equity
	interests							7		13		20			3		9		32
	Net profit/(loss)
	attributable to members
	of the BHP Entity							534		676		1 210			(46)		417		1 581

 

 

Restated Financial Information

Quarter ended 31 December 1999 ($ million) (1)
	Revenue(2)				Profit
		Other				Dep'n &	Borrowing			Net
	Sales	revenue	Total		EBITDA(3)	amort'n	costs	EBT(4)	Tax	profit
	1 986	94	2 080	Minerals	511	(209)	-	302	(34)	268
	940	235	1 175	Petroleum	626	(184)	-	442	(77)	365
	1 954	23	1 977	Steel	266	(109)	-	157	23	180
	79	77	156	Services	27	(3)	-	24	(3)	21
	-	18	18	Net unallocated interest	18	-	(186)	(168)	39	(129)
	(53)	80	27	Group and unallocated items(5)	(74)	(2)	-	(76)	34	(42)
	4 660	527	5 187	BHP Group	1 374	(507)	(186)	681	(18)	663
Quarter ended 31 March 2000 ($ million) (1)
	Revenue(2)				Profit
		Other				Dep'n &	Borrowing			Net
	Sales	revenue	Total		EBITDA(3)	amort'n	costs	EBT(4)	Tax	profit
	1 957	220	2 177	Minerals	(499)	(200)	-	(699)	203	(496)
	1 385	16	1 401	Petroleum	760	(239)	-	521	(189)	332
	2 026	53	2 079	Steel	331	(139)	-	192	(53)	139
	53	-	53	Services	-	(2)	-	(2)	1	(1)
	-	9	9	Net unallocated interest	9	-	(156)	(147)	35	(112)
	(65)	4	(61)	Group and unallocated items(5)	(136)	(2)	-	(138)	227	89
	5 123	302	5 425	BHP Group	465	(582)	(156)	(273)	224	(49)
(1) Before outside equity interests.
(2) Revenues do not add to the BHP Group figure due to intersegment transactions.
(3) EBITDA is earnings before borrowing costs, tax, and depreciation and amortisation.
(4) EBT (earnings before tax) is EBIT (earnings before borrowing costs and tax)
for all Businesses excluding Net unallocated interest and BHP Group.
(5) Includes consolidation adjustments and unallocated items.

 

 

 

 

Restated Financial Information

	Quarter ended				$ million
	31 December 1999				Sales	(1)		EBITDA	(2)		Depreciation			Net		Capital &	(3)	Exploration
					revenue						& amortisation			assets		investment		(before tax)
																expenditure		Gross (4)		Charged
																				to profit
	Minerals
		WA			333			130			36			1 817		6
		Samarco (5)						20						324		-
		Total Iron Ore			333			150			36			2 141		6
		Queensland			361			101			34			1 297		12
		New Mexico			131			37			11			200		1
		Illawarra			101			15			8			201		6
		Kalimantan			70			17			13			209		1
		Total Coal			663			170			66			1 907		20
		WA			20			(52)			3			1 426		7
		Venezuela (5)						(5)						183		2
		Total HBI			20			(57)			3			1 609		9
		Escondida			353			164			37			2 070		11
		Tintaya			59			13			15			433		2
		Ok Tedi			137			(4)			25			637		1
		Total Copper			549			173			77			3 140		14
		Ekati			72			58			10			482		1
		Cannington			115			33			11			515		2
		Other businesses (6)			224			20			2			(575)		1
		Development			1			(28)			4			246		2
		Intra-divisional adjustment			(5)			2			-			(2)		-
		Divisional activities			14			(10)			-			22		-
					1 986			511			209			9 485		55		20		19
	Petroleum (7)
		Bass Strait			425			248			44			742		32
		North West Shelf			192			134			22			1 193		10
		Liverpool Bay			124			94			46			457		6
		Other Businesses			268			239			72			1 342		55
		Marketing activities			236			4			-			(4)		-
		Intra-divisional adjustment			(231)			-						(8)
		Divisional activities			(74)			(93)			-			4		-		41		29
					940			626			184			3 726		103		41		29
	Steel
		Flat Products (8)			549			81			35			1 904		11
		Coated Products			807			102			28			1 698		5
		Discontinuing Operations (9)			914			75			42			2 823		13
		Intra-divisional adjustment			(671)			(3)			(1)			(53)		1
		Divisional activities			26			(12)			(1)			(15)		-
		Transport and Logistics			329			23			6			203		1
					1 954			266			109			6 560		31		-		-
	Services				79			27			3			(5)		1
	Net Unallocated Interest							18						(9 267)		-
	Group and unallocated items				(53)			(74)			2			292		16
	BHP Group				4 660			1 374			507			10 791		206		61		48
(1)		Sales revenues do not add to the BHP Group figure due to							(6)	Includes North America Copper mining and smelting operations which
		intersegment transactions.								ceased during the September 1999 quarter, Beenup mineral sands
(2)		EBITDA is earnings before borrowing costs, tax, and								operation which was closed in April 1999, and Hartley Platinum mine
		depreciation and amortisation.								where operations have been suspended pending conditional sale.
(3)		Excludes capitalised interest and capitalised exploration.							(7)	Petroleum sales revenue includes: Crude oil $667 million, Natural
(4)		Includes capitalised exploration: Minerals $1 million and								gas $103 million, LNG $86 million, LPG $75 million and
		Petroleum $12 million.								Other $9 million.
(5)		Equity accounted investments.							(8)	Includes North Star BHP Steel.
									(9)	Includes the Long Products business (OneSteel), US steel assets, and
										strip casting assets.

 

 

 

 

Restated Financial Information

	Quarter ended				$ million
	31 March 2000				Sales (1)			EBITDA	(2)		Depreciation			Capital &	(3)	Exploration
					revenue						& amortisation			investment		(before tax)
														expenditure		Gross (4) (5)		Charged
																		to profit (6)
	Minerals
		WA			315			171			33			4
		Samarco (7)						6						-
		Total Iron Ore			315			177			33			4
		Queensland			365			140			30			7
		New Mexico			154			49			12			1
		Illawarra			95			17			6			5
		Kalimantan			101			16			12			-
		Total Coal			715			222			60			13
		WA			17			(1 195)			2			6
		Venezuela (7)						(5)						52
		Total HBI			17			(1 200)			2			58
		Escondida			362			175			44			20
		Tintaya			80			15			16			2
		Ok Tedi			196			36			26			8
		Total Copper			638			226			86			30
		Ekati			101			72			5			10
		Cannington			103			34			12			3
		Other businesses (8)			74			16			-			-
		Development			2			(32)			-			1
		Intra-divisional adjustment			(13)			1			-			-
		Divisional activities			5			(15)			2			(3)
					1 957			(499)			200			116		26		24
	Petroleum (9)
		Bass Strait			495			276			55			26
		North West Shelf			318			233			29			9
		Liverpool Bay			140			116			49			7
		Other Businesses			433			234			106			35
		Marketing activities			415			4			-			-
		Intra-divisional adjustment			(334)			-
		Divisional activities			(82)			(103)			-			-		31		39
					1 385			760			239			77		31		39
	Steel
		Flat Products (9)			539			94			37			13
		Coated Products			881			119			31			4
		Discontinuing Operations (11)			681			98			65			8
		Intra-divisional adjustment			(431)			13			1			-
		Divisional activities			29			(19)			(1)			-
		Transport and Logistics			327			26			6			1
					2 026			331			139			26		-		-
	Services				53			-			2			5
	Net Unallocated Interest							9						-
	Group and unallocated items				(65)			(136)			2			1
	BHP Group				5 123			465			582			225		57		63
(1)		Sales revenues do not add to the BHP Group figure due to							(7)	Equity accounted investments.
		intersegment transactions.							(8)	Includes North America Copper mining and smelting operations
(2)		EBITDA is earnings before borrowing costs, tax, and								which ceased during the September 1999 quarter, Beenup mineral
		depreciation and amortisation.								sands operation which was closed in April 1999, and Hartley
(3)		Excludes capitalised interest and capitalised exploration.								Platinum mine where operations have been suspended pending
(4)		Includes capitalised exploration: Minerals $2 million and								conditional sale.
		Petroleum $7 million.							(9)	Petroleum sales revenue includes: Crude oil $996 million, Natural
(5)		Gross exploration for Petroleum of $31 million comprises current								gas $122 million, LNG $118 million, LPG $95 million and Other
		period expenditure of $44 million adjusted by $13 million								$54 million.
		associated with the Typhoon development which has been							(10)	Includes North Star BHP Steel.
		reclassified from exploration expenditure to capital expenditure.							(11)	Includes the Long Products business (OneSteel), US steel assets,
(6)		Includes $2 million Petroleum exploration expenditure previously								and strip casting assets.
		capitalised, now written off.

 

 

 

Restated Financial Information

	Quarter ended				$ million
	30 June 2000				Sales	(1)		EBITDA	(2)		Depreciation		Net		Capital &	(3)	Exploration
					revenue						& amortisation		assets		investment		(before tax)
															expenditure		Gross (4)		Charged
																			to profit
	Minerals
		WA			425			195			32		1 521		7
		Samarco (5)						15					348		14
		Total Iron Ore			425			210			32		1 869		21
		Queensland			370			117			34		1 148		21
		New Mexico			152			50			13		216		17
		Illawarra			111			28			7		189		5
		Kalimantan			98			(3)			14		189		-
		Total Coal			731			192			68		1 742		43
		WA			14			(65)			-		259		21
		Venezuela (5)						(5)					283		44
		Total HBI			14			(70)			-		542		65
		Escondida			413			195			39		2 295		49
		Tintaya			65			8			15		427		9
		Ok Tedi			190			15			28		665		17
		Total Copper			668			218			82		3 387		75
		Ekati			67			58			10		527		17
		Cannington			141			44			11		493		4
		Other businesses (6)			43			23			2		(634)		-
		Development			5			(40)			3		349		4
		Intra divisional adjustment			(8)			(1)			-		(3)		-
		Divisional activities			8			(12)			-		19		-
					2 094			622			208		8 291		229		40		37
	Petroleum (7)
		Bass Strait			505			334			48		631		34
		North West Shelf			304			221			49		1 159		12
		Liverpool Bay			169			134			57		527		10
		Other Businesses			392			224			106		1 135		91
		Marketing activities			403			8			-		(15)		1
		Intra-divisional adjustment			(234)			-					(7)
		Divisional activities			(73)			(119)			-		4		-		121		81
					1 466			802			260		3 434		148		121		81
	Steel
		Flat Products (8)			639			81			35		1 904		20
		Coated Products			954			145			36		1 677		16
		Discontinuing Operations (9)			875			(215)			16		2 061		162
		Intra-divisional adjustment			(676)			3			-		(44)		(1)
		Divisional activities			36			(53)			(2)		(39)		(12)
		Transport and Logistics			404			23			12		180		5
					2 232			(16)			97		5 739		190		-		-
	Services				49			70			2		(5)		1
	Net Unallocated Interest							22					(7 007)
	Group and unallocated items				(109)			(226)			4		553		108
	BHP Group				5 464			1 274			571		11 005		676		161		118
(1)		Sales revenues do not add to the BHP Group figure due to							(6)	Includes North America Copper mining and smelting
		intersegment transactions.								operations which ceased during the September 1999 quarter,
(2)		EBITDA is earnings before borrowing costs, tax, and								Beenup mineral sands operation which was closed in April
		depreciation and amortisation.								1999, and Hartley Platinum mine where operations have been
(3)		Excludes capitalised interest and capitalised exploration.								suspended pending conditional sale.
(4)		Includes capitalised exploration: Minerals $3 million and							(7)	Petroleum sales revenue includes: Crude oil $1 010 million,
		Petroleum $40 million.								Natural gas $126 million, LNG $111 million, LPG $72 million
(5)		Equity accounted investments.								and Other $147 million.
									(8)	Includes North Star BHP Steel.
									(9)	Includes the Long Products business (OneSteel) and US Steel assets.

 

 

 

Restated Financial Information

	Year ended				$ million
	30 June 2000				Sales (1)			EBITDA	(2)		Depreciation		Net		Capital &	(3)	Exploration
					revenue						& amortisation		assets		investment		(before tax)
															expenditure		Gross (4)		Charged
																			to profit (5)
	Minerals
		WA			1 425			655			135		1 521		22
		Samarco (6)						51					348		14
		Total Iron Ore			1 425			706			135		1 869		36
		Queensland			1 459			497			142		1 148		60
		New Mexico			585			184			47		216		20
		Illawarra			397			78			29		189		18
		Kalimantan			352			53			50		189		2
		Total Coal			2 793			812			268		1 742		100
		WA			71			(1 359)			8		259		42
		Venezuela (6)						(16)					283		102
		Total HBI			71			(1 375)			8		542		144
		Escondida			1 512			737			159		2 295		86
		Tintaya			253			48			57		427		16
		Ok Tedi			711			112			104		665		26
		Total Copper			2 476			897			320		3 387		128
		Ekati			343			263			35		527		28
		Cannington			467			146			45		493		11
		Other businesses (7)			575			64			5		(634)		9
		Development			12			(118)			9		349		3
		Intra divisional adjustment			(38)			2			-		(3)		-
		Divisional activities			(16)			(106)			2		19		(7)
					8 108			1 291			827		8 291		452		101		92
	Petroleum (8)
		Bass Strait			1 850			1 085			197		631		141
		North West Shelf			1 016			736			122		1 159		47
		Liverpool Bay			522			403			186		527		29
		Other Businesses			1 242			809			328		1 135		219
		Marketing activities			1 387			14			-		(15)		1
		Intra-divisional adjustment			(943)			-					(7)
		Divisional activities			(300)			(396)			-		4		-		247		190
					4 774			2 651			833		3 434		437		247		190
	Steel
		Flat Products (9)			2 267			324			142		1 904		55
		Coated Products			3 516			462			125		1 677		31
		Discontinuing Operations (10)			3 452			13			165		2 061		195
		Intra-divisional adjustment			(2 475)			17			-		(44)		-
		Divisional activities			118			(92)			(5)		(39)		(12)
		Transport and Logistics			1 382			100			30		180		8
					8 260			824			457		5 739		277		-		-
	Services				296			109			10		(5)		8
	Net Unallocated Interest							60			-		(7 007)		-
	Group and unallocated items				(296)			(531)			13		553		125
	BHP Group				19 872			4 404			2 140		11 005		1 299		348		282
(1)		Sales revenues do not add to the BHP Group figure due to							(7)	Includes North America Copper mining and smelting operations
		intersegment transactions.								which ceased during the September 1999 quarter, Beenup mineral
(2)		EBITDA is earnings before borrowing costs, tax, and								sands operation which was closed in April 1999, and Hartley
		depreciation and amortisation.								Platinum mine where operations have been suspended pending
(3)		Excludes capitalised interest and capitalised exploration.								conditional sale.
(4)		Includes capitalised exploration: Minerals $9 million and							(8)	Petroleum sales revenue includes: Crude oil $3 274 million,
		Petroleum $67 million.								Natural gas $430 million, LNG $398 million, LPG $305 million
(5)		Includes $10 million Petroleum exploration expenditure								and Other $367 million.
		previously capitalised, now written off.							(9)	Includes North Star BHP Steel.
(6)		Equity accounted investments.							(10)	Includes the Long Products business (OneSteel), Newcastle
										primary steelmaking operations, US steel assets, Lifting Products
										and strip casting assets.

 

 

 

Supplementary Information - Foreign exchange & commodity price management

Foreign exchange management The table below provides information as at 30 September 2000 regarding the Group's significant derivative financial instruments used to hedge US dollar sales revenues that are sensitive to changes in exchange rates for the forthcoming twelve months.

				Weighted average A$/US$ exchange rate						Contract amounts
				Forwards		Call options		Put options		US$ million
US Dollars
Q2	- forwards			0.6931		-		-		350
	- collar options			-		0.6608		0.6235		100
	- purchased options			-		-		-		-
Q3	- forwards			0.7069		-		-		270
	- collar options			-		0.6597		0.6292		160
	- purchased options			-		0.5500		-		10
Q4	- forwards			0.7052		-		-		270
	- collar options			-		0.6572		0.6254		120
	- purchased options			-		0.5500		-		40
Q1	- forwards			0.6954		-		-		300
2002	- collar options			-		0.6678		0.6372		60
	- purchased options			-		0.5500		-		10
Commodity price management
The table below provides information as at 30 September 2000 regarding the Group's significant derivative
financial instruments that are sensitive to changes in certain commodity prices for the forthcoming twelve
months.
				Weighted average price						Contract amounts
				Forwards		Put options		Call options		(000's)
Copper
Q2	- forwards			US $0.82/lb		-		-		7,110 lbs
	- collar options			-		US $0.74/lb		US $0.90/lb		73,249 lbs
	- purchased options			-		US $0.74/lb		-		24,802 lbs
	- purchased options			-		-		US $0.90/lb		73,249 lbs
Q3	- forwards			-		-		-		-
	- collar options			-		-		-		-
	- purchased options			-		-		-		-
	- purchased options			-		-		-		-
Q4	- forwards			-		-		-		-
	- collar options			-		-		-		-
	- purchased options			-		-		-		-
	- purchased options			-		-		-		-
	- forwards
Q1	- forwards			-		-		-		-
2002	- collar options			-		-		-		-
	- purchased options			-		-		-		-
	- purchased options			-		-		-		-
Crude oil
Q2	- forwards			US $19.96 bbl		-		-		2,775 bbls
	- collar options			-		-		-		-
	- purchased options			-		-		-		-
Q3	- forwards			US $22.23 bbl		-		-		2,425 bbls
	- collar options			-		-		-		-
	- purchased options			-		-		-		-
Q4	- forwards			US $22.42 bbl		-		-		2,200 bbls
	- collar options			-		-		-		-
	- purchased options			-		-		-		-
Q1	- forwards			-		-		-		-
2002	- collar options			-		-		-		-
	- purchased options			-		-		-		-
lbs - pounds; bbls - barrels