Mining Giant BHP Billiton Posts $5.7B Half Year Loss

SYDNEY—Mining giant BHP Billiton reported on Tuesday a half year net loss of $5.67 billion and warned that the current period of weak commodity prices would be prolonged.

The result for the six months through December 2015 was down 233 percent from the $5.35 billion the Anglo-Australian company posted for the same period a year earlier.

Underlying profit for the latest half year fell 92 percent to $412 million as lower commodity prices cut $7.8 billion in earnings.

The Melbourne, Australia-based company slashed its interim dividend to 16 cents per share, from 62 cents a year ago. It said it was revising its progressive dividend policy to ensure increased financial flexibility.

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“While we were prepared for lower prices across our commodities, we now believe the period of weaker prices and higher volatility will be prolonged,” the miner said in a statement.

BHP reported a net profit of $1.9 billion for the 12 months to June 30, 2015. That was down from $13.8 billion a year earlier. Revenue was down 22 percent to $52 billion.

Miners such as BHP are under increasing pressure as a slowdown in China’s economy results in lower demand for key commodities, such as iron ore and coal.

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