BHP Billiton 1H14 results

About the author:

Author name:

By Tom Sartor

Job title:

Senior Analyst

Date posted:

20 February 2014, 11:05 AM

Sectors Covered:

Junior (Emerging) Resources, Bulk Materials

BHP's underlying earnings of US$7.8 billion were 10% ahead of Bloomberg consensus estimates of US$7.1bn and 16% ahead of CIMB estimates of US$6.7bn. The upside was almost entirely due to lower than expected tax, as reported EBITDA (US$16.5bn) and EBIT (US$12.4bn) were broadly in line with Bloomberg and CIMB estimates.

In our view there were few surprises in the result, other than further clarity on cost savings initiatives (which we view as positive). We make no changes to our forecasts and re-iterate our Add recommendation with a slightly increased NPV-based share price target of A$43.00.

More information

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