Signs of record year

Press, 27 May 1985, Page 27

Signs of record year

NZPA-AAP Sydney The Broken Hill Proprietary Company, Ltd, has given signs of another record profit year, monthly production results showing higher oil output and steady steel production. Crude-oil production in the 11 months to April 30 rose to 75.2 M barrels from last financial year’s total output of 74.9 M barrels, and compared with 68.1 M barrels in the corresponding part of last year, according to the BHP April production report. The petroleum division provides the lion’s share of earnings for BHP. Analysts believed this division will report a profit of ?Aust4slM ($NZ690.03M) in a total company profit of sAust7loM million (SNZIOB6.3M) in the BHP financial year, which will end on May 31. BHP Petroleum last year provided sAust426M ($NZ651.78M) towards the record annual profit of sAust622.4M (JNZ952.272M). BHP’s managing director, Mr Brian Loton, told a group of brokers and financial journalists in Sydney that the company was more than likely to have another record year based on strong profit rises in the first nine months.

In April, BHP Petroleum lifted crude oil output to 7.4 M barrels, an average of 492,000 barrels a day, compared with 6.3 M barrels in April last year. Raw steel production in the latest 11 months rose to 5.53 M tonnes from 5.44 M tonnes with annualised capacity remaining above the 6M tonne figure. Steel output climbed to 475,000 tonnes in April this year from 460,000 tonnes in April, 1984. Local steel sales fell to 3.54 M tonnes from 3.66 M tonnes in the 11 months to April 30 last year. Export sales rose to 816,000 tonnes from 704,000 tonnes. ■ The minerals division reported higher gold output from the 30 per cent owned Telfer mine, in Western Australia. Output in April rose to 3397 fine ounces from 2234 in the corresponding period last year. BHP said the rise was due to the milling of higher grade ores and a better performance from the heap Leach Plant. Coking coal production by the Utah division, which is tipped to show its full value as a BHP subsidiary this year, jumped to 7.02 M tonnes in the latest 11 months compared with 6.70 M tonnes last year. Brokers have put Utah's contribution this year at about sAustl3BM (JNZ2II.I4M), compared with sAust9.9M (5NZ15.147M) in 1983-84 when the group had just been acquired. BHP also indicated that iron ore remained a favoured international commodity, 11 months production in the minerals division rising to 11.04 M tonnes from 9.27 M previously.