BHP Billiton H1 profits up 134%

Global miner BHP Billiton Ltd has more than Global Global miner BHP Billiton Ltd has more than doubled its bottom line first half profit after selling record amounts of key commodities and cautiously looks toward improved global economic conditions this year.

However, the result was inflated by the reversal of an impairment charge for the Ravensthorpe nickel mine in Western Australia booked in the previous corresponding period. BHP Billiton sold the mine in December.

The world's biggest resources company delivered a 134.4 per cent rise in net profit for the six months to December 31 to $US6.135 billion ($A6.99 billion), from $US2.617 billion ($A2.98 billion) in the previous corresponding half.

Excluding one-off items, net profit was down seven cent to $US5.702 billion ($A6.5 billion), from $US6.128 billion ($A6.98 billion) in the first half of 2008/09 and was the miner's weakest result in four years.

The figure was above analysts' expectations of $US5.1 billion ($A5.81 billion).

BHP Billiton chief executive Marius Kloppers said the company's long-term outlook was robust, driven by the growth in China and other developing nations but growth was more uncertain over the short term .

"We remain cautious about the speed and strength of the global economic recovery across the developed world despite the positive momentum in the developed countries," Mr Kloppers said in a teleconference from Sydney.

The company said measures to control loan growth in China were another variable that could affect future growth.

The company declared an interim dividend of 42 US cents per share, compared to 41 US cents for the prior corresponding period.

It did not announce a share buyback scheme as some investors had expected.

The global miner said that given the reduced capital investment in new mining capacity since 2007, worldwide supply of commodities may struggle to keep pace with demand in the medium and longer term.

The company achieved record first half sales for its petroleum, iron ore and coking coal operations.

It said strong sales volume growth and cost controls had helped partially offset lower prices.

The fall in commodity prices and a weak US dollar had still affected earnings compared to the prior corresponding period.

Key iron ore benchmark price negotiations were underway and Mr Kloppers hinted big rises were being sought by miners, saying the spot price had risen to about double the current benchmark rate.

"I always point people back to where is the market today as the best indicator of what the supply demand is and as the best indicator of what expectations should be on where prices are heading," he said.

He said the Henry Tax Review, which was handed to the federal government in December, should provide investment security.

The review has been tipped to recommend a new resource tax for miners.

"The most important thing to mining companies is that they have investment security that the rules won't change on them at the moment when they make an investment," Mr Kloppers said.

Mr Kloppers also said the restructuring of the group's nickel assets was essentially complete, after the sell-off of operations in Yabulu in Queensland and Ravensthorpe.

He said BHP remained concerned about skill shortages, particularly in Western Australia, which had occurred more quickly than anticipated.

Fat Prophets resource analysts Nick Raffan said BHP's results exceeded expectations and the rising demand from countries like China augured well for the company's future earnings.

"I think for a company to come through the period we have done and report a profit of $US5.7 billion is pretty good," Mr Raffan said.

Shares in BHP Billiton closed up three cents, or 0.08 per cent, to $39.88 on Wednesday."