News Release
The financial information set out on pages 27 to 44 for the year ended 30 June 2019 has been prepared onthe basis of accounting policies and methods of computation consistent with those applied in the 30 June 2018 financial statements contained within the Annual Report of the Group, with the exception of the following new accounting standards andinterpretations which became effective from 1 July 2018:
| | IFRS 9/AASB 9 Financial Instruments which is a replacement of IAS 39/AASB 139 FinancialInstruments: Recognition and Measurement; |
| | IFRS 15/AASB 15 Revenue from Contracts with Customers which replaces previous revenue requirements,including IAS 18/AASB 118 Revenue; and |
| | IFRIC 22 Foreign Currency Transactions and Advance Consideration. |
This news release including the financial information is unaudited. Variance analysis relates to the relative financial and/or production performance of BHPand/or its operations during the 2019 financial year compared with the 2018 financial year, unless otherwise noted. Operations includes operated and non-operated assets, unless otherwise noted. Numberspresented may not add up precisely to the totals provided due to rounding.
The following abbreviations may have been used throughout this report: barrels(bbl); billion cubic feet (bcf); barrels of oil equivalent (boe); billion tonnes (Bt); cost and freight (CFR); cost, insurance and freight (CIF), dry metric tonne unit (dmtu); free on board (FOB); grams per tonne (g/t); kilograms per tonne (kg/t);kilometre (km); metre (m); million barrels of oil equivalent (MMboe); million barrels of oil equivalent per day (MMboe/d); thousand cubic feet equivalent (Mcfe); million cubic feet per day (MMcf/d); million ounces per annum (Mozpa); million pounds(Mlb); million tonnes (Mt); million tonnes per annum (Mtpa); ounces (oz); pounds (lb); thousand barrels of oil equivalent (Mboe); thousand ounces (koz); thousand ounces per annum (kozpa); thousand standard cubic feet (Mscf); thousand tonnes (kt);thousand tonnes per annum (ktpa); thousand tonnes per day (ktpd); tonnes (t); and wet metric tonnes (wmt).
The following footnotes apply to this ResultsAnnouncement:
(i) | We use various alternative performance measures to reflect our underlying performance. For further informationon the reconciliations of certain alternative performance measures to our statutory measures, reasons for usefulness and calculation methodology, please refer to alternative performance measures set out on pages 45 to 54. |
(ii) | Reported for total operations (including Onshore US). |
(iii) | Subject to final sustainability assurance review. |
(iv) | Copper equivalent production based on 2019 financial year average realised prices. Excludes production fromOnshore US. |
(v) | The balances of derivatives used to hedge external debt (included within net other financialassets/(liabilities)) at 30 June 2019 was US$(0.2) billion (2018: US$(0.8) billion). The movement primarily relates to a non-cash fair value adjustment of US$(0.4) billion which offsets in net debt. |
(vi) | Maintenance capital includes non-discretionary spend for the followingpurposes: deferred development and production stripping; risk reduction, compliance and asset integrity. |
(vii) | WGOM OBN 2018 Seismic Permit is OCS Permit T18-010. |
(viii) | For further information on the Trion-3DEL well, please refer to the BHP Financial Results presentation for theyear ended 30 June 2019 (slide 37), released 20 August 2019 on www.bhp.com. |
Forward-looking statements
This release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand forcommodities; plans, strategies and objectives of management; closure or divestment of certain operations or facilities (including associated costs); anticipated production or construction commencement dates; capital costs and scheduling; operatingcosts and shortages of materials and skilled employees; anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; tax and regulatory developments.
Forward-looking statements can be identified by the use of terminology, including, but not limited to, intend, aim,project, anticipate, estimate, plan, believe, expect, may, should, will, continue, annualised or similar words. Thesestatements discuss future expectations concerning the results of operations or financial condition, or provide other forward-looking statements.
Theseforward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materiallyfrom those expressed in the statements contained in this release. Readers are cautioned not to put undue reliance on forward-looking statements.
Forexample, our future revenues from our operations, projects or mines described in this release will be based, in part, upon the market price of the minerals, metals or petroleum produced, which may vary significantly from current levels. Thesevariations, if materially adverse, may affect the timing or the feasibility of the development of a particular project, the expansion of certain facilities or mines, or the continuation of existing operations.
Other factors that may affect the actual construction or production commencement dates, costs or production output and anticipated lives of operations, minesor facilities include our ability to profitably produce and transport the minerals, petroleum and/or metals extracted to applicable markets; the impact of foreign currency exchange rates on the market prices of the minerals, petroleum or metals weproduce; activities of government authorities in some of the countries where we are exploring or developing these projects, facilities or mines, including increases in taxes, changes in environmental and other regulations and political uncertainty;labour unrest; and other factors identified in the risk factors discussed in BHPs filings with the U.S. Securities and Exchange Commission (the SEC) (including in Annual Reports on Form 20-F)which are available on the SECs website at www.sec.gov.
Except as required by applicable regulations or by law, the Group does not undertake anyobligation to publicly update or review any forward-looking statements, whether as a result of new information or future events.
Past performance cannotbe relied on as a guide to future performance.
Non-IFRS financial information
BHP results are reported under IFRS. This release may also include certain non-IFRS (also referred to as alternativeperformance measures) and other measures including Underlying attributable profit, Underlying EBITDA, Underlying EBIT, Adjusted effective tax rate, Free cash flow, Gearing ratio, Net debt, Net operating assets, Principal factors that affectUnderlying EBITDA, Underlying basic earnings per share, Underlying EBITDA margin and Underlying return on capital employed (ROCE). These measures are used internally by management to assess the performance of our business and segments, makedecisions on the allocation of our resources and assess operational management. Non-IFRS and other measures have not been subject to audit or review and should not be considered as an indication of oralternative to an IFRS measure of profitability, financial performance or liquidity.
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