BHP sees lower profit for year

Press, 3 April 1987, Page 8

BHP sees lower profit for year

PA Auckland BHP forecasts a lower profit than last year’s record of sAustl billion. The chairman, Sir James Balderstone, said in Auckland yesterday that profit contributions from its petroleum, minerals and steel operations were not likely to change dramaticaly in the near future.

Last year’s profit contribution from oil and gas was about 46 per cent of the total before minority ginterests and extraordinaries, minerals added just over 30 per cent, and steel about 23 per cent.

However, in the .latest nine months, for which the results were disclosed last week, minerals had become the major contributor with more than 43 per cent, while petroleum was 31 per cent, and steel 25 per cent. The change resulted from lower oil and commodity prices.

He said BHP had spent $5 billion on assets in the year ended May.

“We are constantly looking for opportunities wherever they may arise.”

BHP, he said, was al-

ways looking closely at New Zealand. He declined to comment whether this included New Zealand Steel.

Sir James did not see the floating off of the group’s gold interests into BHP Gold Mines, Ltd, as indicating the possibility of similar moves in other sectors.

Again, he said, this had been considered for a number of years. Referring to the recent sale of the group’s investment in Blue Circle Southern Cement,. Ltd, on which BHP made a profit of more than $240 million, he said that move was taken because the company was not complementary to the group’s main streams.

Asked whether BHP was comfortable with its present shareholding breakdown or feared further take-over bids, Sir James was not willing, to be drawn.