B.H.P. expected to show large profit increase

Press, 22 June 1978, Page 14

B.H.P. expected to show large profit increase

NZPA Sydney The Broken Hill Proprietary Company, Ltd, is expected to announce a big increase in net earnings for the year to May 31. Annual production figures indicate that .BH.P. will have at least maintained its improved earnings performance in the six months to May 31. B.H.P.’s share of crude oil output from Bass Strait for

the 12 months was 73.8 M barrels, a rise of 3M barrels over the previous corresponding period. Output in the second half of the year was roughly in line with that of the first.

B.H.P. will gain the full benefits of the revised oilprice policy in the second half, whereas it received higher oil prices for only 14 weeks of the first six months.

Crude oil production, along with natural gas should be the factors behind an increased profit, despite a decline in iron ore production and maganese. Raw steel output dipped 1.4 per cent in the year to 7.4 M tonnes, which is the lowest since 1972-73, and about 575,000 tonnes lower than the 1974-75 peak.

After the closure of Port Kembla’s No. 1 open hearth in July, the centre’s basic oxygen steelmaking shop achieved record production levels in the second half of the financial year. May’s production of 706,000 tonnes was 8.4 per cent higher than a year ago, and 23 per cent above April’s strike-affected performance.

May’s Iron-ore output, at 639,000 tonnes, was 59 per cent below May 1977, and 42 per cent lower than a month ago, because of industrial disputes.. For the 12-months, iron ore production dropped 10.6 per cent, and manganese 30.3 per cent, mainly reflecting the continued depression in the steel market, particularly in Japan. Increases occurred in all categories of petroleum production for the 12-months. Crude oil output increased

4.4 per cent and natural gas and l.p.g. 9.3 per cent, and 15.5 per cent respectively.