BROKEN HILL PROPRIETARY CO LTD, 6-K, 2000-06-07

BROKEN HILL PROPRIETARY CO LTD
6-K, 2000-06-07
STEEL WORKS, BLAST FURNACES & ROLLING MILLS (COKE OVENS)

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IMMEDIATE
4 May 2000
39/00

BHP Third Quarter Profit Report

March 2000

		Quarter Ended
Results Summary	March 2000		February 1999	Change %
Operating revenue ($ million) - Sales revenue	5 123		4 479	+14.4
- Other revenue	302		1 323	-77.2
	5 425		5 802	-6.5
Operating profit attributable to BHP shareholders ($ million)
- Excluding abnormal items	558		46	+1113.0
- Including abnormal items	(46)		418
Basic earnings per share (cents)
- Excluding abnormal items	31.4		2.6	+1107.7
- Including abnormal items	(2.6)		24.0

Significant Features

a record quarterly profit excluding abnormals;
significantly higher prices for oil and copper;
benefits from closure of loss-making businesses;
profits from the new Laminaria/Corallina and Buffalo oil fields (North West Australia);
lower exploration expenditure; and
write-off of HBI plant (Western Australia) and abnormal tax benefit arising from funding arrangements.

Group Results

Change of financial year

Directors announced on 17 December 1999 that the financial year end for the BHP Group would change from 31 May to 30 June with effect from 30 June 2000.

The third quarter profit report includes analysis of results for the quarter ended 31 March 2000 compared with the quarter ended 28 February 1999. In this report all references to the corresponding period are to the quarter ended 28 February 1999. The results for the month of December 1999 are discussed as part of the year to date result below.

Results for the four months ended 31 March 2000 and 31 March 1999 have been included as supplementary data on pages 20 and 21.

Quarter Result

Excluding abnormal items, the operating profit after income tax attributable to BHP shareholders was $558 million, an increase of $512 million compared with the corresponding period. This is the highest quarterly profit, excluding abnormal items, in the Company’s history.

Including abnormal items, the operating result after income tax attributable to BHP shareholders was a loss of $46 million, a decrease of $464 million compared with the corresponding period. The result included a net abnormal loss of $604 million comprising a loss of $794 million (after tax) from the write-off of the HBI plant and an associated tax benefit of $190 million arising from funding arrangements.

The result for the corresponding period included a net abnormal profit of $372 million. This comprised a profit of $353 million (after tax) from the sale of BHP’s principal manganese assets and a profit of $173 million (after tax) from the sale of the BHP Power business. These were partly offset by a loss of $154 million (after tax) from the write-off of the Beenup mineral sands assets and provision for closure costs and site rehabilitation costs.

The HBI plant has been written off as a consequence of operational difficulties, a longer commissioning period and uncertainty regarding ultimate plant capacity. In an effort to determine the technical viability of this facility, Directors have approved a plan to spend approximately $46 million to explore several alternatives to resolve the process and operational difficulties. The Company expects that by the end of the calendar year a decision will be made regarding the continued operation of the facility. If a decision is made to cease operations, additional take-or-pay and other liabilities with a present value of up to approximately $1,100 million before tax may be charged to profit at that time. It is expected that such liabilities would be reduced through negotiation and contractual offsets.

Basic earnings per share were 31.4 cents excluding abnormal items and (2.6) cents including abnormal items. Comparative earnings per share for the quarter ended 28 February 1999 were 2.6 cents excluding abnormal items and 24.0 cents including abnormal items.

Major factors affecting operating profit excluding abnormal items

The following major factors affected operating profit after income tax, excluding abnormal items, attributable to BHP shareholders for the quarter ended 31 March 2000 compared with the corresponding period:

Prices

Significantly higher prices after commodity hedging for oil and copper, and higher international steel and LNG prices increased profit by approximately $250 million compared with the corresponding period. These increases were partly offset by lower prices for coal and iron ore which decreased profit by approximately $70 million compared with the corresponding period.

Ceased, Sold and Discontinuing operations

Decisions to close or cease operations including North America copper and the Hartley platinum mine (Zimbabwe) had a favourable effect on results of approximately $80 million compared with the corresponding period. Results from discontinuing Steel operations improved by approximately $40 million compared with the corresponding period.

New operations

Profits from the recently commissioned Laminaria/Corallina and Buffalo oil fields contributed approximately $70 million for the quarter. Profits from diamond sales at the EKATIä diamond mine (Canada) were approximately $35 million higher than the corresponding period. These were partly offset by increased operating losses of approximately $35 million from HBI Western Australia.

Exploration expenditure

Exploration expenditure charged to profit decreased by approximately $65 million compared with the corresponding period mainly reflecting a reduction in Minerals worldwide exploration.

Volumes

Higher sales volumes, mainly from Petroleum and Steel, have increased profit by approximately $70 million compared with the corresponding period. These were partly offset by lower shipments at Iron Ore (Western Australia) due mainly to cyclonic weather conditions which had an unfavourable effect of approximately $20 million.

Costs

Lower costs of approximately $70 million ($45 million after tax) were achieved during the quarter compared with the corresponding period. These mainly reflected lower borrowing costs due to reduced debt levels.

Exchange rates

Foreign currency fluctuations net of hedging had a favourable effect of approximately $25 million compared with the corresponding period.

Asset sales

Profits from sale of assets were approximately $15 million lower than in the corresponding period.

Year to Date Result

Excluding abnormal items, the operating profit after income tax attributable to BHP shareholders for the ten months ended 31 March 2000 was a profit of $1,462 million, an increase of $957 million or 189.5% compared with the ten months ended 31 March 1999.

Including abnormal items, the result was a profit of $1,210 million, an increase of $333 million compared with the ten months ended 31 March 1999. The year to date result included a net abnormal loss of $252 million comprising:

a net loss of $604 million (after tax) as reported for the quarter ended 31 March 2000; partly offset by

a tax benefit of $160 million arising from the restatement of deferred tax balances as a consequence of the Australian company income tax rate change to 34% applicable from 1 July 2000, and then to 30% applicable from 1 July 2001;

a tax benefit of $112 million arising from finalisation of funding arrangements in August 1999 related to the Beenup mineral sands operation; and

a profit of $80 million (no tax effect) from the sale of PNG petroleum assets in December 1999.

The result for the ten months ended 31 March 1999 included a net abnormal profit of $372 million.

The year to date result included the previously unreported result for the month of December 1999. The operating profit after income tax for December 1999 was $95 million, excluding the abnormal profit on sale of PNG petroleum assets. This result reflected the continuing year to date trend of higher prices for oil and copper. It also included a profit from the sale of the Group’s remaining shareholding in Orbital Engine Corporation Limited. The month was unfavourably affected by the impact of cyclonic weather conditions at Iron Ore and HBI in Western Australia and lower scheduled diamond sales at Ekati.

Basic earnings per share for the ten months to 31 March 2000 were 82.8 cents excluding abnormal items and 68.5 cents including abnormal items. Earnings per share for the ten months to 31 March 1999 were 29.2 cents excluding abnormal items and 50.7 cents including abnormal items.

Dividend

The Board will be considering a dividend at its next meeting on 26 May 2000. Any such dividend would be paid in early July 2000.

Business Results (after income tax)

Quarter ended (1)

Excluding abnormals

Including abnormals

M arch
2000
$ Million

February
1999
$ Million

Change
%

M arch
2000
$ Million

February
1999
$ Million

Change
%

Minerals

298

101

+195.0

(496)

294

Steel

127

47

+170.2

127

47

+170.2

Petroleum

335

85

+294.1

335

85

+294.1

Services

(2)

13

(2)

186

Net unallocated
interest

(112)

(127)

(112)

(112)

Group and
unallocated items

(91)

(88)

99

(82)

Operating profit
before outside
equity interests

555

31

+1690.3

(49)

403

Outside equity
interests

3

12

3

15

Operating profit
attributable to
member of the
BHP Entity

558

46

+1113.0

(46)

418

(1) Comparative figures have been restated to reflect the transfer of internal currency hedging results from Minerals, Steel and Petroleum to Group and unallocated items, following a decision to cease new internal hedging effective 1 June 1999. The results of internal currency hedging activities eliminate within Group and unallocated items.

Minerals

Minerals’ result for the quarter, excluding abnormal items, was a profit of $298 million, an increase of $197 million or 195.0% compared with the corresponding period.

Including abnormal items, the result for the quarter was a loss of $496 million compared with a profit of $294 million for the corresponding period. The result included an abnormal loss of $794 million (after tax) following the write-off of the HBI plant. The corresponding period included a profit of $347 million (after tax) from the sale of BHP’s principal manganese assets, partly offset by a loss of $154 million (after tax) from the write-off of the Beenup mineral sands assets, and provision for closure costs and site rehabilitation.

Major factors which contributed to the result, excluding abnormal items, were:

losses in the corresponding period from closed or ceased operations at North America copper and the Hartley platinum mine;

higher average copper prices, net of hedging;

lower exploration expenditure charged to profit, reflecting a significant reduction in worldwide exploration;

lower unit costs at coal operations in Queensland;

increased profits from diamond sales at the EKATI^TM diamond mine which commenced sales in January 1999;

tax benefiting of certain overseas exploration expenditure; and

a profit from the sale of rolling stock at iron ore operations in Western Australia.

These were partly offset by:

significantly lower average US dollar coal prices for Bowen Basin (Queensland) and Illawarra (New South Wales);

operating losses from HBI Western Australia;

lower average US dollar iron ore prices; and

lower iron ore shipments mainly due to cyclonic weather conditions.

Sales revenue was $1,957 million, 10.4% lower than in the corresponding period, mainly due to lower prices and volumes for iron ore, and lower prices for coal, partly offset by higher prices for copper.

The average price booked for copper shipments for the quarter, after hedging and finalisation adjustments, was US$0.80 per pound (February 1999 quarter - US$0.65). Finalisation adjustments after tax, representing adjustments on prior period shipments settled in the current quarter, were $0.3 million unfavourable (February 1999 quarter - $22 million unfavourable).

Unhedged copper shipments not finalised at 31 March 2000 which are expected to be finalised before 30 June 2000 have been brought to account at US$0.80 per pound; shipments to be finalised after 30 June 2000 have been brought to account at US$0.83 per pound. The LME copper spot price on Friday 31 March 2000 was US$0.78 per pound.

As at 31 March 2000, for the three months ending 30 June 2000, 50.5 million pounds of anticipated copper shipments are covered by forward contracts at an average price of US$0.81 per pound. In addition, 71.9 million pounds of anticipated shipments are covered by collar options with a minimum price of US$0.74 per pound and maximum price of US$0.90 per pound, together with 71.9 million pounds of purchased call options at an average price of US$0.90 per pound.

Exploration expenditure was $26 million for the quarter (February 1999 quarter - $66 million), reflecting a reduction in worldwide exploration. The charge against profit was $24 million (February 1999 quarter - $79 million).

Significant developments during the quarter included:

agreement with Nippon Steel on iron ore prices for the year which commenced 1 April 2000, resulting in a 4.35% increase for fine ore and a 5.77% increase for lump ore; and

conclusion of annual price negotiations with each of the Japanese steel mills for deliveries of hard coking coal for the year which commenced 1 April 2000, resulting in an average 5% reduction in prices.

Steel

Steel’s results for the quarter was a profit of $127 million, an increase of $80 million or 170.2% compared with the corresponding period. There were no abnormal items in either period.

Major factors which contributed to the result were:

improved performance from domestic and overseas discontinuing operations;

higher Australasian export steel prices;

increased domestic despatches, reflecting strong domestic demand from the construction sector; and

improved performance from the Asian businesses.

These were partly offset by:

lower profits from asset sales.

Total steel despatches from all operations for the March 2000 quarter were 1.872 million tonnes, 3.8% below the corresponding period:

Australian domestic despatches were 0.991 million tonnes, up 8.3%;
Australian export despatches were 0.540 million tonnes, down 30.4%;
New Zealand steel despatches were 0.143 million tonnes, up 17.2%; and
despatches from overseas plants were 0.198 million tonnes, up 48.9%.

Significant developments during the quarter included:

announcement of the proposed spin out of the Long Products business in the second half of calendar 2000; and

formation of a joint venture with Nucor Corporation to complete technical development and to licence strip casting technology.

Petroleum

Petroleum’s result for the quarter was a profit of $335 million, an increase of $250 million or 294.1% compared with the corresponding period. There were no abnormal items in either period.

Major factors which contributed to the result were:

higher average realised oil prices before commodity hedging of A$41.86 per barrel (February 1999 quarter – A$18.07 per barrel), reflecting higher US dollar prices (March 2000 quarter – US$26.37 per barrel; February 1999 quarter – US$11.42 per barrel);

profits from the new Laminaria/Corallina oil fields and the Buffalo oil field which commenced production in November 1999 and December 1999 respectively;

higher oil and gas sales volumes; and

lower exploration expenditure charged to profit.

These were partly offset by:

a net loss of $52 million for the current quarter from commodity hedging activities. This compares to a net gain of $10 million for the corresponding period on significantly lower volumes. The average realised oil price after commodity hedging was A$38.38 per barrel (February 1999 quarter – A$18.99 per barrel). US dollar realised prices after commodity hedging for the current quarter were US$24.18 per barrel (February 1999 quarter – US$12.01 per barrel); and

lower profits from the sale of assets.

As at 31 March 2000, for the three months ending 30 June 2000, 4.4 million barrels of potential sales after secondary taxes have been hedged at an average price of US$20.67 per barrel, and 2.6 million barrels are covered by zero cost collar options with a downside average of US$17.75 per barrel and an upside average of US$23.56 per barrel, together with 2.4 million barrels of purchased call options at an average price of US$27.52 per barrel.

Oil and condensate production was 33.9% higher than the corresponding period due to higher production at Bass Strait, the recently commissioned Laminaria/Corallina and Buffalo oil fields and higher production in the North West Shelf due to repairs and maintenance to the Cossack Pioneer in the corresponding period. These were partly offset by the sale of Elang/Kakatua/Kakatua North producing fields (North West Australia), and Kutubu, Gobe and Moran producing fields (Papua New Guinea). In addition there was lower production at Griffin (Western Australia) due to natural field decline and poor weather conditions.

Natural gas production was 6.5% higher. This was largely due to higher production from increased capacity at offshore US facilities, increased demand for Bass Strait gas, and higher nominations for gas from the Bruce field in the UK. These were partly offset by lower gas production in the UK due to the sale of Southern North Sea assets.

Exploration expenditure for the quarter ended 31 March 2000 was $44 million (February 1999 quarter - $81 million) and the charge against profit was $39 million (February 1999 quarter - $62 million) reflecting lower exploration activity in the Gulf of Mexico (USA), Algeria (Africa) and West Africa.

Significant developments during the quarter included:

approval by the UK Department of Industry and Trade to develop the Keith oil field located in the North Sea;

approval for the Typhoon oil and gas development in the Gulf of Mexico, with first oil expected in the third quarter of calendar 2001;

favourable exploration results were recorded on the Mad Dog discovery located in the Atwater Foldbelt in the ultra deep water of the Gulf of Mexico. The appraisal well, located in Green Canyon Block 782 in 4,420 feet of water, reached a total depth of 20,268 feet and encountered 265 net feet of oil pay;

following approval by the US District court and the expiration of the appeal period, the settlement of the complaint brought against BHP by the State of Hawaii has now been completed. The completion of the settlement, which was originally announced on 23 November 1999, has resulted in the dismissal of BHP from the antitrust law suit; and

BHP entered into a Joint Venture Agreement with Total Exploration Production USA, Inc. (Total) covering 21 leases owned by BHP in the Walker Ridge Area of the Gulf of Mexico. Under the terms of this agreement, Total will earn a 30 per cent interest in the Chinook and Klondike Prospects with an option to earn a 30 per cent interest in the Cascade Prospect.

Services

Services’ result for the quarter, excluding abnormal items, was a loss of $2 million, a decrease of $15 million compared with the corresponding period due mainly to higher insurance claims in the March 2000 quarter.

The corresponding period included an abnormal profit of $173 million (after tax) from the sale of the BHP Power business. There were no abnormal items in the current period.

A significant event during the quarter was the sale of the bulk carrier Iron Spencer.

Net Unallocated Interest

Net Unallocated Interest expense was $112 million for the quarter compared with $127 million for the corresponding period. This decrease was mainly due to lower debt levels in the current quarter and overseas interest expense in the corresponding period for which no tax deduction was available. These were partly offset by lower interest income, lower capitalised interest, and higher interest rates in the US and Australia.

Group and unallocated items

Excluding abnormal items, the result for Group and unallocated items was a loss of $91 million for the quarter compared with a loss of $88 million for the corresponding period.

Including abnormal items, the result for the quarter was a profit of $99 million compared with a loss of $82 million for the corresponding period. The current quarter included a $190 million tax benefit arising from funding arrangements related to HBI Western Australia. The corresponding period included a $6 million (after tax) profit on early close out of internal hedge transactions following the sale of the manganese assets.

Outside equity interests

Outside equity interests’ share of operating profit increased due mainly to improved results from the Asian steel businesses and Ok Tedi copper.

Consolidated Financial Results - Quarter

Quarter ended

March
2000
$ Million

February
1999
$ Million

Change
%

Operating revenue

   Sales

5 123

4479

+14.4

   Interest revenue

12

56

-78.6

   Other revenue

290

1267

-77.1

5 425

5802

-6.5

Operating profit including abnormal items, before
depreciation, amortisation and borrowing costs

465

1247

-62.7

Deduct: Depreciation and amortisation

582

566

+2.8

Borrowing costs (1)

156

170

-8.2

* Operating (loss)/profit before income tax (a)

(273)

511

Add/(Deduct): **Income tax benefit/(expense) attributable to operating profit (a)

224

(108)

Operating (loss)/profit after income tax

(49)

403

Add: Outside equity interests in operating (loss)/ profit after income tax

3

15

Operating (loss)/profit after income tax, attributable to members of the BHP entity

(46)

418

(a) The operating profit after income tax, attributable to members of the BHP Entity comprises:

* Operating profit before abnormal items and income tax

865

181

+377.9

** Income tax expanse attributable to operating profit before abnormal item

(310)

(150)

Operating profit after income tax before abnormal items

555

31

+1690.3

Outside equity interests in operating profit after income tax before abnormal items

3

15

Operating profit after income tax, before abnormal items, attributable to members of the BHP Entity

558

46

+1113.0

* Abnormal items included in operating

Profit before income tax

(1 138)

330

** Abnormal income tax benefit

534

42

Abnormal items after income tax

(604)

372

Operating (loss)/profit after income tax, attributable to members of the BHP Entity

(46)

418

Average A$/US$ hedge settlement rate

63c

63c

(1) capitalised interest of

-

$52m

Consolidated Financial Results - Quarter

Revenue

Sales revenue of $5 123 million increased by $644 million or 14.4% compared with the corresponding period. Other revenue, including interest income, decreased by $1 021 million, reflecting lower proceeds from asset sales. Total operating revenue decreased by $377 million to $5 425 million.

Depreciation and Amortisation

Depreciation and amortisation charges increased by $16 million to $582 million. The charge for the quarter reflects higher depreciation following commissioning of the Laminaria and Buffalo oil fields, and higher Petroleum production. The corresponding period included depreciation on businesses now closed, ceased or sold.

Borrowing costs

Borrowing costs decreased by $14 million to $156 million, mainly due to lower funding levels partly offset by lower capitalised interest and higher interest rates in the US and Australia.

Income Tax Expense

Excluding abnormal items, income tax expense of $310 million was $160 million higher than for the corresponding period. The charge for the quarter represented an effective tax rate of 35.8% (February 1999 quarter – 82.9%) which approximates the nominal Australian tax rate of 36%.

Consolidated Financial Results – Year to date

Ten months ended 31 March

2000
$ Million

1999
$ Million

Change
%

Operating revenue

   Sales

16042

16037

   Interest revenue

64

167

-61.7

   Other revenue

1217

1 807

-32.7

17 323

18 011

-3.8

Operating profit including abnormal items, before depreciation, amortisation and borrowing costs

3 451

3 856

-10.5

Deduct: Depreciation and amortisation

1 721

1 820

-5.4

Borrowing costs (1)

566

596

-5.0

*Operating profit before income tax (a)

1 164

1 440

-19.2

Add/(Deduct): **Income tax benefit/(expense) attributable to operating profit (a)

21

(563)

Operating profit after income tax

1 185

877

+35.1

Add: Outside equity interests in operating profit after income tax

25

-

Operating profit after income tax, attributable to members of the BHP entity

1 210

877

+38.0

(a) The operating profit after income tax, attributable to members of the BHP Entity comprises:

* Operating profit before abnormal items And income tax

2222

1 110

+100.2

** Income tax expense attributable to operating profit before abnormal items

(785)

(605)

Operating profit after income tax before abnormal items

1437

505

+184.6

Outside equity interests 'm operating profit after income tax before abnormal items

25

-

Operating profit after income tax, before abnormal items, attributable to members of the BHP Entity

1 462

505

+189.5

* Abnormal items included in operating Profit before income tax

(1 058)

330

** Abnormal income tax benefit

806

42

Abnormal items after income tax

(252)

372

Operating profit after income tax, attributable to members of the BHP entity

1 210

877

Average A $/US$ hedge settlement rate

64c

62c

(1) Excludes capitalised interest of

$18m

$189m

Statutory Information

Quarter ended

Year to date

March
2000

February
1999

March
2000

March
1999

Basic earnings per share (cents) (1)

- Excluding abnormal items

31.4

2.6

82.8

29.2

- Including abnormal items

(2.6)

24.0

68.5

50.7

Basic earnings per American Depositary Share (US cents)(2)

- Excluding abnormal items

38.1

3.2

100.4

37.0

- Including abnormal items

(3.2)

29.8

83.0

64.3

Based on operating profit after income 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 1,776,451,780 (1999 - 7,739,022,648) for the quarter and 1,765,268,662 (1999 - 1,729,865,892) for the ten months. The weighted average number of shares for the comparative quarter and year to date excludes 338,066,630 shares held by the Beswick Group which bought back and cancelled in March 1999.
Each American Depositary Share (ADS) represents two fully paid ordinary shares. Translated at the noon buying rate on Friday 31 March 2000 as certified by the Federal Reserve Bank of New York A$1=US$0.6062 (1999 A$1=US$0.6340). For the February 1999 quarter, the noon buying rate on Friday 26 February 1999 was $A1=US$0.6205.

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.

R A St John
Company Secretary
The Broken Hill Proprietary
Company Limited

******

For information contact:

Media Relations:

Mandy Frostick:
(BH) (61 3) 9609 4157
(AH): (61 3) 9687 6651
Mobile: (61) 0419 546 245
Email: [email protected]

Investor Relations:

Robert Porter:
(BH) (61 3) 9609 3540
Email:[email protected]

Pierre Hirsch:
(BH) (1 415) 774 2030
Email:[email protected]

Supplementary Information - Segment Results (Quarter)

Quarterly comparison - March 2000 with February 1999(1)(2)

Quarter ended 31 March 2000



Operating Revenue(3)
$ Million

Operating Profit
$ Million

Dep'n & Borrowing



Sales

Other
revenue

Total



EBITDA(4)

amort'n

costs

EBIT (5)

Income tax excluding abnormal items

Abnormal items after income tax (6)

Operating
profit including abnormals after tax

1 957

220

2 177

Minerals

639

(200)

439

(141)

(794)

(496)

1 815

39

1 854

Steel

306

( 132)

174

(47)

-

127

1 385

16

1 401

Petroleum

766

(239)

527

192)

335

385

14

399

Services

6

(9)

(3)

1

(2)

-

9

9

Net unallocate dinterest

9

-

( 156)

( 147)

35

(112)

(67)

4

(63)

Group and unallocated items (7)

(123)

(2)

-

( 125)

34

190

99

5 123

302

5 425

BHP Group

1603

(582)

( 156)

865

(310)

(604)

(49)



Quarter ended 28 February 1999



Operating Revenue (3)
$Million

Operating Profit
$ Million

Dep'n & Borrowing

Sales

Other
revenue

Total

EBITDA (4)

amort'n

costs

EBIT (5)

Income tax excluding abnormal items

Abnormal items after income tax (6)

Operating
profit including abnormals after tax

2 185

674

2 859

Minerals

473

(226)

247

(146)

193

294

1720

53

1 773

Steel

175

(119)

56

(9)

-

47

662

62

724

Petroleum

333

(201)

132

(47)

-

85

497

506

1003

Services

36

17)

19

( 6)

173

186

-

27

27

Net unallocated interest

27

-

(170)

( 143)

16

-

(127)

(115)

1

( 114)

Group and unallocated items (7)

(127)

(3)

( 130)

42

6

(82)

4479

1323

5902

BHP Group

917

(566)

(170)

191

(150)

372

403

(1) Before outside equity interests.

(2) Comparative figures have been restated to reflect the transfer of internal currency hedging results from Minerals, Steel, and Petroleurn to Group and unallocated items. The results of internal currency hedging activities eliminate within Group and unallocated items.

(3) Operating revenues do not add to the BHP Group figure due to intersegment transactions.

(4) EBITDA is earnings before borrowing costs, income tar, and depreciation and amortisation.

(5) Result for all Businesses except Net unallocated interest is EBIT (earnings before borrowing costs and income tax).

(6) Tax benefit on March 2000 abnormal items: Minerals $344 million and Group and unallocated items $190 million.

(7) Includes consolidation adjustments and unallocated items.

(8) Following adoption of AASB 1036: Borrowing costs, February 1999 figures have been restated to include ancillary borrowing costs within Net unallocated interest. These costs were previously included in Business results.

(9) Tax benefit/(expense) on February 1999 abnormal items: Minerals $44 million, Services $1 million and Group $(3) million.

Supplementary Information - Segment Results (Quarter)

Quarterly comparison - March 2000 with November 1999(1)

Quarter ended 31 March 2000





Operating Revenue(2)
$ Million

Operating Profit
$ Million

Dep'n & Borrowing

Sales

Other
revenue

Total

EBITDA (3)

amort'n

costs

EBIT (4)

Income tax excluding abnormal items

Abnormal items after income tax (5)

Operating
profit including abnormals after tax

1 957

220

2 177

Minerals

639

(200)

439

(141)

(794)

(496)

1 815

39

1 854

Steel

306

( 132)

174

(47)

-

127

1 385

16

1 401

Petroleum

766

(239)

527

192)

335

385

14

399

Services

6

(9)

(3)

1

(2)

-

9

9

Net unallocate dinterest

9

-

( 156)

( 147)

35

(112)

(67)

4

(63)

Group and unallocated items (6)

(123)

(2)

-

( 125)

34

190

99

5 123

302

5 425

BHP Group

1603

(582)

( 156)

865

(310)

(604)

(49)

Quarter ended 30 November 1999





Operating Revenue (2)
$Million

Operating Profit
$ Million



Dep'n & Borrowing

Sales

Other
revenue

Total

EBITDA (3)

amort'n

costs

EBIT (4)

Income tax excluding abnormal items

Abnormal items after income tax (7)

Operating
profit including abnormals after tax

2 037

55

2 092

Minerals

563

(206)

-

357

(99)

49

307

1 872

9

1 881

Steel

267

(105)

-

162

(56)

63

169

888

29

917

Petroleum

518

(155)

-

363

(123)

49

289

437

35

472

Services

32

(9)

-

23

(6)

5

22

-

4

4

Net unallocated interest

4

-

(187)

( 183)

45

(4)

(142)

(55)

38

( 17)

Group and unallocated items (6)

(60)

(3)

-

(63 )

26

(2)

(39)

4 802

170

4 972

BHP Group

1 324

(478)

(187)

659

(213)

160

606

(1) Before outside equity interests.

(2) Operating revenues do not add to the BHP Group figure due to intersegment transactions.

(3) EBITDA is earnings before borrowing costs, income tar, and depreciation and amortisation.

(4) Result for all Businesses except Net unallocated interest is EBIT (earnings before borrowing costs and income tax).

(5) Tax benefit on March 2000 abnormal items: Minerals $344 million and Group and unallocated items $190 million.

(6) Includes consolidation adjustments and unallocated items.

(7) Tax benefit on November 1999 abnormal items: minerals $49 million, Steel $63 million, Petroleum $49 million, Services $5 million, Net unallocated interest $(4) million, Group and unallocated items $(2) million.

Supplementary Information - Segment Results (Year to date)

Quarterly comparison - March 2000 with November 1999(1)

Quarter ended 31 March 2000



Operating Revenue(2)
$ Million

Operating Profit
$ Million

Dep'n & Borrowing

Sales

Other
revenue

Total



EBITDA (3)

amort'n

costs

EBIT (4)

Income tax excluding abnormal items

Abnormal items after income tax (5)

Operating
profit including abnormals after tax

6 568

466

7 034

Minerals

1 950

(681)

-

1 269

(405)

(745)

119

5 992

76

6 068

Steel

838

( 377)

-

461

(149)

63

375

3 563

469

4 032

Petroleum

1 895

(623)

-

1 272

(455)

129

946

1 369

181

1 550

Services

111

(29)

-

82

(11)

5

76

-

43

43

Net unallocate dinterest

43

-

(566 )

(523 )

127

(4)

(400)

(193)

46

(147)

Group and unallocated items (6)

(328)

(11)

-

(339 )

108

300

69

16 042

1 281

17 323

BHP Group

4 509

(1 721)

(566 )

2 222

(785)

(252)

1 185

Quarter ended 30 November 1999

Operating Revenue (2)
$Million



Operating Profit
$ Million



Dep'n & Borrowing

Sales

Other
revenue

Total

EBITDA (3)

amort'n

costs

EBIT (4)

Income tax excluding abnormal items

Abnormal items after income tax (7)

Operating
profit including abnormals after tax

7 721

961

8 682

Minerals

2 096

(756)

-

1 340

(613)

193

920

6 450

110

6 560

Steel

795

(392)

-

403

(137)

-

266

2 362

101

2 463

Petroleum

1 096

(598)

-

498

(196)

-

302

1 737

690

2 427

Services

182

(59)

-

123

(23)

173

273

-

107

107

Net unallocated interest

107

-

(596)

(489)

97

-

(392)

(527)

5

(522)

Group and unallocated items (6)

(750)

(15)

-

(765)

267

6

(492)

16 037

1 974

18 011

BHP Group

3 526

(1 820)

(596)

1 110

(605)

372

877

(1) Before outside equity interests.

(2) Operating revenues do not add to the BHP Group figure due to intersegment transactions,

(3) EBITDA is earnings before borrowing costs, income tax, and depreciation and amortisation.

(4) Result for all Businesses except Net unallocated interest is EBIT (earnings before borrowing costs and income tax).

(5) Tax benefit on March 2000 abnormal items: Minerals $393 million, Steel $63 million, Petroleum $49 million, Services $5 million, Net unallocated interest $(4) million, and Group and unallocated items $300 million.

(6) Includes consolidation adjustments and unallocated items

(7) Tax benefit/(expense) on March 1999 abnormal items: Minerals $44 million, Services $1 million and Group $(3) million

Supplementary Information - Business Results

Quarter ended 31 March 2000

Sales revenue (1)

EBITDA (2)(before abnormal items)

Depreciation & amortisation

Capital & investment expenditure (3)

Exploration (before tax)

Gross (4)(5)

Charged to profit(6)

Minerals



Steelmaking and Energy Materials

Iron Ore

315

177

33

4

Coal

714

222

60

13

Hot Briquetted Iron

17

(62)

2

58

Manganese (7)

-

4

-

-

Intra-divisional adjustment

(10)

(2)

1036

339

95

75

Non Ferrous & Industrial Materials

South America Copper

445

193

60

22

Pacific Copper

195

35

26

8

EKATI TM diamonds

101

72

5

10

Cannington silver-lead-zinc

105

36

12

3

Other Businesses (8)

75

13

-

-

Intra-divisional adjustment

(1)

(1)

920

348

103

43

Minerals Development

2

(32)

-

1

Divisional Activities

(1)

(16)

2

(3)

1 957

639

200

116

26

24

Steel

Flat Products

539

89

37

12

Coated Products

881

114

30

4

Discontinuing Operations (9)

832

104

65

8

Intra-divisional adjustment

(466)

12

Divisional activities

29

(13)

-

-

1 815

306

132

24



Petroleum (10)

Bass Strait

495

281

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)

(102)

-

-

31

   39

1 385

766

239

77

31

39

Services

385

9

6

-

-

Net Unallocated Interest

-

9

-

-

-

-

Group and unallocated items

(67)

(123)

2

2

-

-

BHP Group

5 123

1 603

582

225

57

63

(1)

(2)

(3)

(4)

(5)

(6)

Sales revenues do not add to the BHP Group figure due to intersegment transactions.
EBITDA is earnings before borrowing costs, income tan and depreciation and amortisation.
Excludes capitalised interest and capitalised exploration.
Includes capitalised exploration: Minerals $2 million and Petroleum $ 7 million.
Gross exploration for Petroleum of $31 million comprises current period expenditure of $44 million adjusted by $13 million associated with the Typhoon development which has been reclassified from exploration expenditure to capital expenditure.
Includes $2 million Petroleum exploration expenditure previously capitalised, now written off.

(7)

(8)

(9)

(10)

Principal manganese assets were sold in December 1998.
Includes North America Copper mining and smelting operations which ceased during the August 1999 quarter, Beenup mineral sands operation which closed in April 1999 and Hartley platinum mine where operations have been suspended pending conditional sale.
Includes the Long Products business, Newcastle primary steelmaking operations, US steel assets, and strip casting assets
Petroleum sales revenue includes: Crude oil$996million, Natural gas $122 million, LNG $118 million, LPG $95 million and Other $54 million.

Supplementary Information - Business Results

Quarter ended 28 February 1999 (1)

Sales revenue (2)

EBITDA (3)(before abnormal items)

Depreciation & amortisation

Capital & investment expenditure (4)

Exploration (before tax)

Gross (5)

Charged to profit(6)

Minerals







Steelmaking and Energy Materials



Iron Ore

413

207

33

13

Coal

785

222

64

41

Hot Briquetted Iron

-

(7)

-

83

Manganese (7)

41

4

1

2

Intra-divisional adjustment

-

-





1 239

426

98

139

Non Ferrous & Industrial Materials

South America Copper

342

106

48

63

Pacific Copper

173

22

27

4

EKATI TM diamonds (8)

22

23

9

8

Cannington silver-lead-zinc

109

30

7

6

Other Businesses (9)

295

(45)

32

22

Intra-divisional adjustment

(3)

4

938

140

123

103

Minerals Development

10

(76)

4

1

Divisional Activities

(2)

(17)

1

3

2 185

473

226

246

66

79

Steel

Flat Products

506

37

34

21

Coated Products

769

81

36

8

Discontinuing Operations (10)

847

55

49

55

Intra-divisional adjustment

(414)

12

-



Divisional activities

12

(10)

-

-

1 720

175

119

84

-

-

Petroleum (11)

Bass Strait

190

74

38

78

North West Shelf (12)

137

96

21

24

Liverpool Bay

96

77

52

15

Other Businesses (12)

178

60

89

69

Marketing activities

111

23

1

-

Intra-divisional adjustment

(66)

-

Divisional activities

16

3

-

2

81

62

662

333

201

188

81

62

Services

497

36

17

7

-

-

Net Unallocated Interest

-

27

-

-

-

-

Group and unallocated items

(115)

(127)

3

6

-

-

BHP Group

4 479

917

566

531

147

141

(1)

(2)

(3)

(4)

(5)

These figures have been restated to reflect:
- the transfer of internal currency hedging results from Minerals, Steel and Petroleum to Group and unallocatcd items. The results of internal currency hedging activities eliminate within Group and unallocated items;
- the outcome of the Steel Portfolio Review; and
- minor adjustments to sales revenue and EBITDA within| Petroleum following the transfer of other sales from Marketing activities to the relevant asset category.
Sales revenues do not add to the BHP Group figure due to intersegment transactions.
EBITDA is earnings before borrowing costs, income tax and depreciation and amortisation.
Excludes capitalised interest and capitalised exploration.
Includes capitalised exploration: Minerals $4 million and Petroleum $19million.

(6)

(7)

(8)

(9)

(10)

(11)

(12)

Includes $17 million Minerals exploration expenditure previously capitalised, now written off.
Principal manganese assets were sold in December 1998.
Production at EKATI tm diamond mine commenced in October 1998.
Includes North America Copper mining and smelting operations which ceased during the August 1999 quarter, Beenup mineral sands operation, which closed in April 1999, and Hartley Platinum mine where operations have been suspended pending conditional sale.
Includes the Long Products business, Newcastle primary steelmaking operations, US steel assets, Lifting Products, Tubernakers Water, and strip casting assets.
Petroleum sales revenue includes: Crude oil $310million, Natural gas $126million, LPG $82million, LPG$31million and Other $ 113 million.
Laminaria assets are reported in Other Businesses and are no longer part of North West Shelf

Supplementary Information - Business Results

Four months ended 31 March 2000

Sales revenue (1)

EBITDA (2)(before abnormal items)

Depreciation & amortisation

Capital & investment expenditure (3)

Exploration (before tax)

Gross (4)(5)

Charged to profit(6)

Minerals

Steelmaking and Energy Materials

Iron Ore

408

211

44

5

Coal

945

286

81

17

Hot Briquetted Iron

26

(86)

3

61

Manganese (7)

-

4

-

-

Intra-divisional adjustment

(9)

(1)

1 370

414

128

83

Non Ferrous & Industrial Materials

South America Copper

561

255

77

28

Pacific Copper

228

34

34

9

EKATI TM diamonds

104

77

8

10

Cannington silver-lead-zinc

142

47

15

4

Other Businesses (8)

127

20

2

-

Intra-divisional adjustment

(1)

(2)

1 161

431

136

51

Minerals Development

3

(54)

3

(3)

Divisional Activities

(2)

(24)

1

(1)

2 532

767

268

130

40

38

Steel

Flat Products

698

109

49

16

Coated Products

1 135

137

38

6

Discontinuing Operations (9)

1 074

116

79

12

Intra-divisional adjustment

(631)

16

-

Divisional activities

36

(15)

1

-

2 312

363

167

34

-

-

Petroleum (10)

Bass Strait

635

353

70

42

North West Shelf

388

280

37

12

Liverpool Bay

194

155

66

9

Other Businesses

526

294

136

46

Marketing activities

481

5

-

-

Intra-divisional adjustment

(389)

-

Divisional activities

(109)

(131)

-

-

42

49

1 726

956

309

109

42

49

Services

501

35

11

6

-

-

Net Unallocated Interest

-

18

-

-

-

-

Group and unallocated items

(86)

(161)

4

3

-

-

BHP Group

6 515

1 978

759

282

82

87

(1)

(2)

(3)

(4)

(5)

(6)

Sales revenues do not add to the BHP Group figure due to intersegment transactions.
EBITDA is earnings before borrowing costs, income tax and depreciation and amortisation.
Excludes capitalised interest and capitalised exploration.
Includes capitalised exploration: Minerals $2 million and Petroleum $11 million.
Gross exploration for Petroleum of$42 million comprises current period expenditure of$55 million adjusted by $13 million associated with the Typhoon development which has been reclassified from exploration expenditure to capital expenditure.
Includes $5 million Petroleum exploration expenditure
previously capitalised, now written off.

(7)

(8)

(9)

(10)

Principal manganese assets were sold in December 1998.
Includes North America Copper mining and smelting operations which ceased during the August 1999 quarter. Beenup mineral sands operation which closed in April 1999 and Hartley platinum mine where operations have been suspended pending conditional sale.
Includes the Long Products business, Newcastle primary steelmaking operations, US steel assets, and strip casting assets
Petroleum sales revenue includes: Crude oil$1,228 million, Natural gas $165 million, LNG $150 million, LPG $118 million and Other $ 65 million.

Supplementary Information - Business Results

Four months ended 31 March 2000

Sales revenue (1)

EBITDA (2)(before abnormal items)

Depreciation & amortisation

Capital & investment expenditure (3)

Exploration (before tax)

Gross (4)

Charged to profit(5)

Minerals

Steelmaking and Energy Materials

Iron Ore

539

271

43

34

Coal

1 048

296

88

48

Hot Briquetted Iron

3

(10)

-

110

Manganese (6)

45

7

1

2

Intra-divisional adjustment

(6)

(1)

1 629

563

132

194

Non Ferrous & Industrial Materials

South America Copper

459

145

66

73

Pacific Copper

229

40

35

4

EKATI TM diamonds

43

40

13

12

Cannington silver-lead-zinc

117

36

10

8

Other Businesses (7)

418

(51)

42

41

Intra-divisional adjustment

(2)

4

1 264

214

166

138

Minerals Development

12

(89)

5

2

Divisional Activities

1

(24)

3

-

2 906

664

306

334

77

89

Steel

Flat Products

707

57

46

32

Coated Products

1 068

109

47

12

Discontinuing Operations (8)

1 191

75

65

69

Intra-divisional adjustment

(598)

11

Divisional activities

18

(15)

-

-

2 386

237

158

113

-

-

Petroleum (9)

Bass Strait

281

113

54

105

North West Shelf

187

133

24

31

Liverpool Bay

103

73

56

20

Other Businesses

248

82

120

87

Marketing activities

152

23

1

-

Intra-divisional adjustment

(75)

-

Divisional activities

17

1

-

-

97

76

913

425

255

243

97

76

Services

647

49

21

9

-

-

Net Unallocated Interest

-

32

-

-

-

-

Group and unallocated items

(148)

(183)

5

82

-

-

BHP Group

6 083

1 224

745

781

174

165

Restated Financial Information

The tables on pages 22 and 23 have been included to provide selected financial period comparatives which reflect the outcome of the Steel Portfolio Review and minor adjustments to sales revenue and EBITDA within Petroleum following the transfer of ‘other sales’ from marketing activities to the relevant asset category.

Half year ended

$ Million

$ Million

30 November 1999

Sales (1)revenue

EBITDA (2)(before abnormal items)

Depreciation & amortisation

Net assets

Capital & investment expenditure (3)

Exploration (before tax)

Gross

Charged

(4)

to profit (5)

Minerals

Steelmaking and Energy Materials



Iron Ore

688

340

68

1991

11

Coal

1332

398

140

1870

41

Hot Briquetted Iron

36

(101)

6

1600

1ll

Manganese (6)

1

2

-

49

-

Intra-divisional adjustment

(16)

(5)

( 1)

2041

634

214

5509

163

Non Ferrous & Industrial Materials

South America Copper

799

338

98

2496

21

Pacific Copper

307

55

so

671

-

EKATI TM diamonds

174

135

20

482

1

Cannington silver-lead-zinc

211

67

22

527

4

Other Businesses (7)

502

30

4

(625)

20

Intra-divisional adjustment

-

-

1

1993

625

194

3 552

46

Minerals Development

4

(32)

5

280

2

Divisional Activities

(2)

(44)

-

(4)

(3)

4036

1 193

413

9 337

208

30

25

Steel

Flat Products

1 117

153

70

1 947

22

Coated Products

1699

207

56

1 919

11

Discontinuing Operations (8)

1828

144

84

3072

49

Intra-divisional adjustment

(1 016)

( 8)

51)

(22)





Divisional activities

52

(21)

-

( 5)



3680

475

210

6682

60

-

-

Petroleum (9)

Bass Strait

816

457

92

866

96

North West Shelf

384

278

42

1 216

31

Liverpool Bay

182

127

76

445

11

Other Businesses

368

230

103

1 482

94

Marketing activities

553

1

1

Intra-divisional adjustment

342)

-

Divisional activities

(124)

(154)

-

7

-

100

79

1 837

939

314

4031

232

100

79

Services

868

76

18

121

14

-

-

Net Unallocated Interest

-

25

-

(9 679)

-

Group and unallocated items

(107)

(167)

7

22

14

-

-

BHP Group

9 527

2 531

962

10 514

528

130

104

(1)

(2)

(3)

(4)

(5)

(6)

Sales revenues do not add to the BHP Group figure due to intersegment transactions.
EBITDA is earnings before borrowing costs, income tax, and depreciation and amortisation.
Excludes capitalised interest and capitalised exploration.
Includes capitalised exploration: Minerals $5 million and Petroleum $32 million.
Includes $11 million Petroleum exploration expenditure previously capitalised, now written off.
Principal manganese assets were sold in December 1998.

(7)

(8)

(9)

Includes North America Copper mining and smelting operations which ceased during the August 1999 quarter, Beenup mineral sands operation, which closed in April 1999, and Hartley Platinum mine where operations have been suspended pending conditional sale.
Includes the Long Products business, Newcastle primary steelmaking operations, US steel assets, and strip casting assets.
Petroleum sales revenue includes: Crude oil $1 183 million, Natural gas $172 million, LNO $161 million, LPG $128 million and Other $193 million.

Restated Financial Information

Half year ended

$ Million

$ Million

30 November 1998 (1)

Sales (2)revenue

EBITDA (3)(before abnormal items)

Depreciation & amortisation

Net assets

Capital & investment expenditure (4)

Exploration (before tax)

Gross

Charged

(5)

to profit

Minerals

Steelmaking and Energy Materials

Iron Ore

903

490

72

1 709

42

Coal

1 689

582

143

1 989

57

Hot Briquetted Iron (6)

-

25

1

1 912

325

Manganese (7)

238

66

10

331

2

Intra-divisional adjustment

-

-

-

2 830

1 163

226

5 941

426

Non Ferrous & Industrial Materials

South America Copper

761

256

79

2 520

229

Pacific Copper

378

115

54

773

15

EKATI TM diamonds (8)

-

7

-

572

42

Cannington silver-lead-zinc

178

42

15

546

9

Other Businesses (9)

682

(22)

69

1 619

68

Intra-divisional adjustment

(27)

-

(4)

1 972

398

217

6 026

363

Minerals Development

20

(87)

7

324

4

Divisional Activities

(7)

(42)

-

73

2

4 815

1 432

450

12 364

795

115

97

Steel

Flat Products

1 198

175

73

1 878

67

Coated Products

1 797

216

65

2 163

21

Discontinuing Operations (10)

2 107

177

96

3 351

99

Intra-divisional adjustment

(1 095)

9

(52)

Divisional activities

57

(19)

-

63

1

4 064

558

234

7 403

188

-

-

Petroleum (11)

Bass Strait

470

235

67

812

127

North West Shelf

332

226

48

1 223

47

Liverpool Bay

184

126

92

1 387

45

Other Businesses

321

114

135

2 035

189

Marketing activities

180

(11)

1

14

-

Intra-divisional adjustment

(41)

-

Divisional activities

3

(19)

-

31

-

140

79

1 449

671

343

5 502

408

140

79

Services

1 090

133

38

497

10

-

-

Net Unallocated Interest

-

75

-

(13 064)

-

-

-

Group and unallocated items

(379)

(567)

10

38

-

-

-

BHP Group

9 954

2 302

1 075

12 740

1 401

255

176

(1)

(2)

(3)

(4)

(5)

(6)

These figures have been restated to reflect the transfer of internal currency hedging reults from Minerals, Steel and Petroleum to Group and Unallocated items. The results of internal currency hedging activities eliminate within Group and unallocated items.
Sales Revenues do not add to the BHP Group figure due to intersegment transactions.
EBITDA is earnings before costs, income tax, and depreciation and amortisation.
Excludes capitalised interest and capitalised exploration.
Includes capitalised exploration: minerals $18 million and Petroleum $61 million
Includes profit on sale of Karratha to Port Hedland Natural gas pipeline

(7)

(8)

(9)

(10)

(11)

Principal manganese assets were sold in December 1998.
Production at EKATI tm diamond mine commenced in October 1998.
Includes North America Copper mining and smelting Beenup mineral sands operation, which was closed in April 1999, and Hartley Platinum mine where operations have been suspended pending conditional sale.
Includes the Long Products business, Newcastle primary steelmaking operations, US steel assets, Lifting Products, Tubemakers Water, and strip casting assets.
Petroleum sales revenue includes: Crude oil $729 million, Natural gas $269 million, LNG $167 million, LPG $87 million and Other $197 million.

Quarter ended (1)
	Excluding abnormals			Including abnormals
	M arch 2000 $ Million	February 1999 $ Million	Change %	M arch 2000 $ Million	February 1999 $ Million	Change %
Minerals	298	101	+195.0	(496)	294
Steel	127	47	+170.2	127	47	+170.2
Petroleum	335	85	+294.1	335	85	+294.1
Services	(2)	13		(2)	186
Net unallocated interest	(112)	(127)		(112)	(112)
Group and unallocated items	(91)	(88)		99	(82)
Operating profit before outside equity interests	555	31	+1690.3	(49)	403
Outside equity interests	3	12		3	15
Operating profit attributable to member of the BHP Entity	558	46	+1113.0	(46)	418
(1) Comparative figures have been restated to reflect the transfer of internal currency hedging results from Minerals, Steel and Petroleum to Group and unallocated items, following a decision to cease new internal hedging effective 1 June 1999. The results of internal currency hedging activities eliminate within Group and unallocated items.

	Quarter ended
	March 2000 $ Million	February 1999 $ Million	Change %
Operating revenue
Sales	5 123	4479	+14.4
Interest revenue	12	56	-78.6
Other revenue	290	1267	-77.1
	5 425	5802	-6.5
Operating profit including abnormal items, before depreciation, amortisation and borrowing costs	465	1247	-62.7
Deduct: Depreciation and amortisation	582	566	+2.8
Borrowing costs (1)	156	170	-8.2
* Operating (loss)/profit before income tax (a)	(273)	511
Add/(Deduct): *Income tax benefit/(expense) attributable to operating profit (a)*	224	(108)
Operating (loss)/profit after income tax	(49)	403
Add: Outside equity interests in operating (loss)/ profit after income tax	3	15
Operating (loss)/profit after income tax, attributable to members of the BHP entity	(46)	418
(a) The operating profit after income tax, attributable to members of the BHP Entity comprises:
* Operating profit before abnormal items and income tax	865	181	+377.9
** Income tax expanse attributable to operating profit before abnormal item	(310)	(150)
Operating profit after income tax before abnormal items	555	31	+1690.3
Outside equity interests in operating profit after income tax before abnormal items	3	15
Operating profit after income tax, before abnormal items, attributable to members of the BHP Entity	558	46	+1113.0
* Abnormal items included in operating
Profit before income tax	(1 138)	330
** Abnormal income tax benefit	534	42
Abnormal items after income tax	(604)	372
Operating (loss)/profit after income tax, attributable to members of the BHP Entity	(46)	418
Average A$/US$ hedge settlement rate	63c	63c
(1) capitalised interest of	-	$52m

	Ten months ended 31 March
	2000 $ Million	1999 $ Million	Change %
Operating revenue
Sales	16042	16037
Interest revenue	64	167	-61.7
Other revenue	1217	1 807	-32.7
	17 323	18 011	-3.8
Operating profit including abnormal items, before depreciation, amortisation and borrowing costs	3 451	3 856	-10.5
Deduct: Depreciation and amortisation	1 721	1 820	-5.4
Borrowing costs (1)	566	596	-5.0
Operating profit before income tax (a)*	1 164	1 440	-19.2
Add/(Deduct): *Income tax benefit/(expense) attributable to operating profit (a)*	21	(563)
Operating profit after income tax	1 185	877	+35.1
Add: Outside equity interests in operating profit after income tax	25	-
Operating profit after income tax, attributable to members of the BHP entity	1 210	877	+38.0
(a) The operating profit after income tax, attributable to members of the BHP Entity comprises:
* Operating profit before abnormal items And income tax	2222	1 110	+100.2
** Income tax expense attributable to operating profit before abnormal items	(785)	(605)
Operating profit after income tax before abnormal items	1437	505	+184.6
Outside equity interests 'm operating profit after income tax before abnormal items	25	-
Operating profit after income tax, before abnormal items, attributable to members of the BHP Entity	1 462	505	+189.5
* Abnormal items included in operating Profit before income tax	(1 058)	330
** Abnormal income tax benefit	806	42
Abnormal items after income tax	(252)	372
Operating profit after income tax, attributable to members of the BHP entity	1 210	877
Average A $/US$ hedge settlement rate	64c	62c
(1) Excludes capitalised interest of	$18m	$189m

	Quarter ended		Year to date
	March 2000	February 1999	March 2000	March 1999
Basic earnings per share (cents) (1)
- Excluding abnormal items	31.4	2.6	82.8	29.2
- Including abnormal items	(2.6)	24.0	68.5	50.7
Basic earnings per American Depositary Share (US cents)(2)
- Excluding abnormal items	38.1	3.2	100.4	37.0
- Including abnormal items	(3.2)	29.8	83.0	64.3

Quarterly comparison - March 2000 with February 1999(1)(2)
Quarter ended 31 March 2000

Operating Revenue(3) $ Million				Operating Profit $ Million

					Dep'n & Borrowing
Sales	Other revenue	Total		EBITDA(4)	amort'n	costs	EBIT (5)	Income tax excluding abnormal items	Abnormal items after income tax (6)	Operating profit including abnormals after tax
1 957	220	2 177	Minerals	639	(200)		439	(141)	(794)	(496)
1 815	39	1 854	Steel	306	( 132)		174	(47)	-	127
1 385	16	1 401	Petroleum	766	(239)		527	192)		335
385	14	399	Services	6	(9)		(3)	1		(2)
-	9	9	Net unallocate dinterest	9	-	( 156)	( 147)	35		(112)
(67)	4	(63)	Group and unallocated items (7)	(123)	(2)	-	( 125)	34	190	99
5 123	302	5 425	BHP Group	1603	(582)	( 156)	865	(310)	(604)	(49)

Quarter ended 28 February 1999
Operating Revenue (3) $Million				Operating Profit $ Million

					Dep'n & Borrowing
Sales	Other revenue	Total		EBITDA (4)	amort'n	costs	EBIT (5)	Income tax excluding abnormal items	Abnormal items after income tax (6)	Operating profit including abnormals after tax
2 185	674	2 859	Minerals	473	(226)		247	(146)	193	294
1720	53	1 773	Steel	175	(119)		56	(9)	-	47
662	62	724	Petroleum	333	(201)		132	(47)	-	85
497	506	1003	Services	36	17)		19	( 6)	173	186
-	27	27	Net unallocated interest	27	-	(170)	( 143)	16	-	(127)
(115)	1	( 114)	Group and unallocated items (7)	(127)	(3)		( 130)	42	6	(82)
4479	1323	5902	BHP Group	917	(566)	(170)	191	(150)	372	403

(1) Before outside equity interests.
(2) Comparative figures have been restated to reflect the transfer of internal currency hedging results from Minerals, Steel, and Petroleurn to Group and unallocated items. The results of internal currency hedging activities eliminate within Group and unallocated items.
(3) Operating revenues do not add to the BHP Group figure due to intersegment transactions.
(4) EBITDA is earnings before borrowing costs, income tar, and depreciation and amortisation.
(5) Result for all Businesses except Net unallocated interest is EBIT (earnings before borrowing costs and income tax).
(6) Tax benefit on March 2000 abnormal items: Minerals $344 million and Group and unallocated items $190 million.
(7) Includes consolidation adjustments and unallocated items.
(8) Following adoption of AASB 1036: Borrowing costs, February 1999 figures have been restated to include ancillary borrowing costs within Net unallocated interest. These costs were previously included in Business results.
(9) Tax benefit/(expense) on February 1999 abnormal items: Minerals $44 million, Services $1 million and Group $(3) million.

Quarterly comparison - March 2000 with November 1999(1)
Quarter ended 31 March 2000

Operating Revenue(2) $ Million				Operating Profit $ Million

					Dep'n & Borrowing
Sales	Other revenue	Total		EBITDA (3)	amort'n	costs	EBIT (4)	Income tax excluding abnormal items	Abnormal items after income tax (5)	Operating profit including abnormals after tax
1 957	220	2 177	Minerals	639	(200)		439	(141)	(794)	(496)
1 815	39	1 854	Steel	306	( 132)		174	(47)	-	127
1 385	16	1 401	Petroleum	766	(239)		527	192)		335
385	14	399	Services	6	(9)		(3)	1		(2)
-	9	9	Net unallocate dinterest	9	-	( 156)	( 147)	35		(112)
(67)	4	(63)	Group and unallocated items (6)	(123)	(2)	-	( 125)	34	190	99
5 123	302	5 425	BHP Group	1603	(582)	( 156)	865	(310)	(604)	(49)

Quarter ended 30 November 1999
Operating Revenue (2) $Million				Operating Profit $ Million

					Dep'n & Borrowing
Sales	Other revenue	Total		EBITDA (3)	amort'n	costs	EBIT (4)	Income tax excluding abnormal items	Abnormal items after income tax (7)	Operating profit including abnormals after tax
2 037	55	2 092	Minerals	563	(206)	-	357	(99)	49	307
1 872	9	1 881	Steel	267	(105)	-	162	(56)	63	169
888	29	917	Petroleum	518	(155)	-	363	(123)	49	289
437	35	472	Services	32	(9)	-	23	(6)	5	22
-	4	4	Net unallocated interest	4	-	(187)	( 183)	45	(4)	(142)
(55)	38	( 17)	Group and unallocated items (6)	(60)	(3)	-	(63 )	26	(2)	(39)
4 802	170	4 972	BHP Group	1 324	(478)	(187)	659	(213)	160	606

(1) Before outside equity interests.
(2) Operating revenues do not add to the BHP Group figure due to intersegment transactions.
(3) EBITDA is earnings before borrowing costs, income tar, and depreciation and amortisation.
(4) Result for all Businesses except Net unallocated interest is EBIT (earnings before borrowing costs and income tax).
(5) Tax benefit on March 2000 abnormal items: Minerals $344 million and Group and unallocated items $190 million.
(6) Includes consolidation adjustments and unallocated items.
(7) Tax benefit on November 1999 abnormal items: minerals $49 million, Steel $63 million, Petroleum $49 million, Services $5 million, Net unallocated interest $(4) million, Group and unallocated items $(2) million.

Quarter ended 31 March 2000
Quarter ended 31 March 2000	Sales revenue (1)	EBITDA (2)(before abnormal items)	Depreciation & amortisation	Capital & investment expenditure (3)	Exploration (before tax)
					Exploration (before tax)
					Gross (4)(5)	Charged to profit(6)
					Gross (4)(5)	Charged to profit(6)
Minerals
Steelmaking and Energy Materials
Iron Ore	315	177	33	4
Coal	714	222	60	13
Hot Briquetted Iron	17	(62)	2	58
Manganese (7)	-	4	-	-
Intra-divisional adjustment	(10)	(2)
	1036	339	95	75
Non Ferrous & Industrial Materials
South America Copper	445	193	60	22
Pacific Copper	195	35	26	8
EKATI TM diamonds	101	72	5	10
Cannington silver-lead-zinc	105	36	12	3
Other Businesses (8)	75	13	-	-
Intra-divisional adjustment	(1)	(1)
	920	348	103	43
Minerals Development	2	(32)	-	1
Divisional Activities	(1)	(16)	2	(3)
	1 957	639	200	116	26	24
Steel
Flat Products	539	89	37	12
Coated Products	881	114	30	4
Discontinuing Operations (9)	832	104	65	8
Intra-divisional adjustment	(466)	12
Divisional activities	29	(13)	-	-
	1 815	306	132	24
Petroleum (10)
Bass Strait	495	281	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)	(102)	-	-	31	39
	1 385	766	239	77	31	39
Services	385		9	6	-	-
Net Unallocated Interest	-	9	-	-	-	-
Group and unallocated items	(67)	(123)	2	2	-	-
BHP Group	5 123	1 603	582	225	57	63

(1) (2) (3) (4) (5) (6)	Sales revenues do not add to the BHP Group figure due to intersegment transactions. EBITDA is earnings before borrowing costs, income tan and depreciation and amortisation. Excludes capitalised interest and capitalised exploration. Includes capitalised exploration: Minerals $2 million and Petroleum $ 7 million. Gross exploration for Petroleum of $31 million comprises current period expenditure of $44 million adjusted by $13 million associated with the Typhoon development which has been reclassified from exploration expenditure to capital expenditure. Includes $2 million Petroleum exploration expenditure previously capitalised, now written off.		(7) (8) (9) (10)	Principal manganese assets were sold in December 1998. Includes North America Copper mining and smelting operations which ceased during the August 1999 quarter, Beenup mineral sands operation which closed in April 1999 and Hartley platinum mine where operations have been suspended pending conditional sale. Includes the Long Products business, Newcastle primary steelmaking operations, US steel assets, and strip casting assets Petroleum sales revenue includes: Crude oil$996million, Natural gas $122 million, LNG $118 million, LPG $95 million and Other $54 million.

Quarter ended 28 February 1999 (1)
Quarter ended 28 February 1999 (1)	Sales revenue (2)	EBITDA (3)(before abnormal items)	Depreciation & amortisation	Capital & investment expenditure (4)	Exploration (before tax)
					Exploration (before tax)
					Gross (5)	Charged to profit(6)
					Gross (5)	Charged to profit(6)
Minerals
Steelmaking and Energy Materials
Iron Ore	413	207	33	13
Coal	785	222	64	41
Hot Briquetted Iron	-	(7)	-	83
Manganese (7)	41	4	1	2
Intra-divisional adjustment	-	-
	1 239	426	98	139
Non Ferrous & Industrial Materials
South America Copper	342	106	48	63
Pacific Copper	173	22	27	4
EKATI TM diamonds (8)	22	23	9	8
Cannington silver-lead-zinc	109	30	7	6
Other Businesses (9)	295	(45)	32	22
Intra-divisional adjustment	(3)	4
	938	140	123	103
Minerals Development	10	(76)	4	1
Divisional Activities	(2)	(17)	1	3
	2 185	473	226	246	66	79
Steel
Flat Products	506	37	34	21
Coated Products	769	81	36	8
Discontinuing Operations (10)	847	55	49	55
Intra-divisional adjustment	(414)	12	-
Divisional activities	12	(10)	-	-
	1 720	175	119	84	-	-
Petroleum (11)
Bass Strait	190	74	38	78
North West Shelf (12)	137	96	21	24
Liverpool Bay	96	77	52	15
Other Businesses (12)	178	60	89	69
Marketing activities	111	23	1	-
Intra-divisional adjustment	(66)	-
Divisional activities	16	3	-	2	81	62
	662	333	201	188	81	62
Services	497	36	17	7	-	-
Net Unallocated Interest	-	27	-	-	-	-
Group and unallocated items	(115)	(127)	3	6	-	-
BHP Group	4 479	917	566	531	147	141

Four months ended 31 March 2000
Four months ended 31 March 2000	Sales revenue (1)	EBITDA (2)(before abnormal items)	Depreciation & amortisation	Capital & investment expenditure (3)	Exploration (before tax)
					Exploration (before tax)
					Gross (4)(5)	Charged to profit(6)
					Gross (4)(5)	Charged to profit(6)
Minerals
Steelmaking and Energy Materials
Iron Ore	408	211	44	5
Coal	945	286	81	17
Hot Briquetted Iron	26	(86)	3	61
Manganese (7)	-	4	-	-
Intra-divisional adjustment	(9)	(1)
	1 370	414	128	83
Non Ferrous & Industrial Materials
South America Copper	561	255	77	28
Pacific Copper	228	34	34	9
EKATI TM diamonds	104	77	8	10
Cannington silver-lead-zinc	142	47	15	4
Other Businesses (8)	127	20	2	-
Intra-divisional adjustment	(1)	(2)
	1 161	431	136	51
Minerals Development	3	(54)	3	(3)
Divisional Activities	(2)	(24)	1	(1)
	2 532	767	268	130	40	38
Steel
Flat Products	698	109	49	16
Coated Products	1 135	137	38	6
Discontinuing Operations (9)	1 074	116	79	12
Intra-divisional adjustment	(631)	16	-
Divisional activities	36	(15)	1	-
	2 312	363	167	34	-	-
Petroleum (10)
Bass Strait	635	353	70	42
North West Shelf	388	280	37	12
Liverpool Bay	194	155	66	9
Other Businesses	526	294	136	46
Marketing activities	481	5	-	-
Intra-divisional adjustment	(389)	-
Divisional activities	(109)	(131)	-	-	42	49
	1 726	956	309	109	42	49
Services	501	35	11	6	-	-
Net Unallocated Interest	-	18	-	-	-	-
Group and unallocated items	(86)	(161)	4	3	-	-
BHP Group	6 515	1 978	759	282	82	87

Half year ended		$ Million			$ Million
30 November 1999	Sales (1)revenue	EBITDA (2)(before abnormal items)	Depreciation & amortisation	Net assets	Capital & investment expenditure (3)	Exploration (before tax)
						Exploration (before tax)
						Gross	Charged
						(4)	to profit (5)
Minerals
Steelmaking and Energy Materials
Iron Ore	688	340	68	1991	11
Coal	1332	398	140	1870	41
Hot Briquetted Iron	36	(101)	6	1600	1ll
Manganese (6)	1	2	-	49	-
Intra-divisional adjustment	(16)	(5)		( 1)
	2041	634	214	5509	163
Non Ferrous & Industrial Materials
South America Copper	799	338	98	2496	21
Pacific Copper	307	55	so	671	-
EKATI TM diamonds	174	135	20	482	1
Cannington silver-lead-zinc	211	67	22	527	4
Other Businesses (7)	502	30	4	(625)	20
Intra-divisional adjustment	-	-		1
	1993	625	194	3 552	46
Minerals Development	4	(32)	5	280	2
Divisional Activities	(2)	(44)	-	(4)	(3)
	4036	1 193	413	9 337	208	30	25
Steel
Flat Products	1 117	153	70	1 947	22
Coated Products	1699	207	56	1 919	11
Discontinuing Operations (8)	1828	144	84	3072	49
Intra-divisional adjustment	(1 016)	( 8)		51)	(22)
Divisional activities	52	(21)	-	( 5)
	3680	475	210	6682	60	-	-
Petroleum (9)
Bass Strait	816	457	92	866	96
North West Shelf	384	278	42	1 216	31
Liverpool Bay	182	127	76	445	11
Other Businesses	368	230	103	1 482	94
Marketing activities	553	1	1
Intra-divisional adjustment	342)	-
Divisional activities	(124)	(154)	-	7	-	100	79
	1 837	939	314	4031	232	100	79
Services	868	76	18	121	14	-	-
Net Unallocated Interest	-	25	-	(9 679)	-
Group and unallocated items	(107)	(167)	7	22	14	-	-
BHP Group	9 527	2 531	962	10 514	528	130	104

(1) (2) (3) (4) (5) (6)	Sales revenues do not add to the BHP Group figure due to intersegment transactions. EBITDA is earnings before borrowing costs, income tax, and depreciation and amortisation. Excludes capitalised interest and capitalised exploration. Includes capitalised exploration: Minerals $5 million and Petroleum $32 million. Includes $11 million Petroleum exploration expenditure previously capitalised, now written off. Principal manganese assets were sold in December 1998.	(7) (8) (9)	Includes North America Copper mining and smelting operations which ceased during the August 1999 quarter, Beenup mineral sands operation, which closed in April 1999, and Hartley Platinum mine where operations have been suspended pending conditional sale. Includes the Long Products business, Newcastle primary steelmaking operations, US steel assets, and strip casting assets. Petroleum sales revenue includes: Crude oil $1 183 million, Natural gas $172 million, LNO $161 million, LPG $128 million and Other $193 million.