Like its competitor Rio Tinto, Australian [ds_preview]mining giant BHP Billiton saw rising volumes of iron ore output in 2016. However, both indicators for the bulk shipping industry don‘t change their expectation for this year.
For the half year ended in December BHP Billiton recorded an iron ore output of 118 mill. tons in its Western Australian business, reflecting a growth of 4% compared to the same period of 2015. The last quarter was even more positive with an increase of 9% to 60 mill. tons, the company announced.
Despite this positive development, BHP Billiton remains cautious with its expectations for the near future. The outlook for the full year 2017 was unchanged at 228 to 237 mill. tons.
One of BHP‘s biggest competitors Rio Tinto took the same path a couple of days ago after announcing an iron ore shipment growth of 3 %. Guidance for 2017 remained unchanged and is expected to be between 330 and 340 mill. t. Both players and their performances are regarded as indicator for the global bulker fleet, as the iron ore and coal shipments especially from Australia to China absorb a big share of bulk tonnage and therefore effects the rate level significantly.
»Performed well«
In sum, BHP Billiton, also active in copper, petroleum and coal businesses. is satisfied with 2016. The nnderlying attributable profit in the December 2016 half year is expected to include gains related to asset divestments in a range of approximately 150 mill. $ to 200 mill. $.
»We have performed well during a period of higher prices, with record iron ore volumes achieved at WAIO. Our simpler organisational structure has freed our assets to
focus on what matters most and to deliver safer and more productive operations«, CEO Andrew Mackenzie said in a statement.
