Commodity Comment: BHP Forecasts Higher Iron Ore Output, Weaker Petroleum

Date : 07/17/2019 @ 1:00AM
Source : Dow Jones News
Stock : BHP Group Limited (BHP)
Quote : 48.81  -0.49 (-0.99%) @ 12:59AM

Commodity Comment: BHP Forecasts Higher Iron Ore Output, Weaker Petroleum

BHP (ASX:BHP)
Historical Stock Chart

2 Months : From Jun 2019 to Aug 2019

Click Here for more BHP Charts.
   By Rhiannon Hoyle 
 

BHP Group Ltd. (BHP.AU) said it expects group output to be slightly higher in fiscal-year 2020 versus the year prior, despite a forecast fall in petroleum volumes, as it released fourth-quarter production figures on Wednesday. Here are some of the highlights from the report.

---

Iron Ore

BHP's annual iron-ore production was broadly unchanged at 238 million tons in the year through June, it said. Production of between 242 million and 253 million tons is forecast for the 2020 fiscal year, during which it will undertake a significant maintenance program at Port Hedland. That program is designed to improve productivity as it seeks to raise output further and includes a car dumper maintenance campaign planned for this quarter, it said.

---

Petroleum

Petroleum production increased by 1% to 121 million barrels of oil equivalent during the 12-month period, although volumes are expected to fall to between 110 and 116 million in the 2020 fiscal year, it said. That is due to planned maintenance at Atlantis and natural field decline across the portfolio. The rise in fiscal-year 2019 production was attributed to a 5% increase in natural gas production, which it said reflected increased tax barrels at Trinidad and Tobago.

---

Metallurgical Coal

BHP said metallurgical coal production was broadly flat at 42 million tons last fiscal year and that production is expected to be between 41 million and 45 million tons in the 2020 fiscal year. "With major wash plant shutdowns at Goonyella, Peak Downs and Caval Ridge planned in the September 2019 quarter, volumes will be significantly weighted to the subsequent three quarters of the financial year," it said.

---

Copper

BHP produced 1.69 million tons of copper during the fiscal year, 4% down on the year prior, because of lower output at Escondida where production declined by 6%. An expected 12% decline in copper grade there was partially offset by record average concentrator throughput, said BHP. Pampa Norte copper production decreased by 7% due to adverse weather and a fire at the electro-winning plant at Spence, it said. Group copper production of between 1.71 million and 1.82 million tons is expected in the 2020 fiscal year, the miner added.

 

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

 

(END) Dow Jones Newswires

July 16, 2019 19:45 ET (23:45 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

Latest BHP Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.