Cop this latest dim witted effort at mendacious sensationalism from Australia's ABC.
BHP Billiton has posted a statutory net full-year loss of $US6.385 ($8.3 billion) on significant one-off write-downs. It is the company's first annual loss since BHP and Billiton merged 15 years ago.
The company was expected to post a $US5.9 billion ($7.7 billion) loss according to the average of 11 analysts' estimates compiled by Bloomberg.Now have a look at a more intelligent report from the Australian.
BHP Billiton's slump in profit was largely driven by a 31 per cent dive in revenue due to plunging commodity prices. (my italics)
Secondly, the loss was created by asset writedowns because it paid too much for US shale oil and gas assets in the boom and was hit by last year’s Samarco disaster.So the truth on the matter is the ABC is telling lies. There was no trading loss, as the ABC report falsely implies. The 'loss' was brought about by bringing to book the sale of over-valued assets.
BHP actually created a cash surplus from earnings and made a trading profit. Indeed that trading profit of some 22 cents a share was less than its 30 cents a share dividend, which reflects confidence in the 2016-17 outlook and its moderate gearing.
Sounds like a pretty good time to buy some BHP shares.
And to sell off the God awful ABC.