BHP Sees Petroleum Output at High End of Guidance -- Commodity Comment
By Rhiannon Hoyle
BHP Group Ltd. Wednesday reported a 6% increase in first-half
iron-ore production, but said metallurgical coal and copper
production both fell 5%. Here are some remarks from the operational
"Total petroleum production decreased by 12% to 50 million
barrels of oil equivalent. Guidance for the 2021 financial year
remains unchanged at between 95 and 102 million barrels. Volumes
are expected to be in the upper half of the guidance range as
additional production from Shenzi, following the acquisition of a
further 28% working interest, is partially offset by the impacts of
significant hurricane activity in the Gulf of Mexico."
"For the December 2020 half year, our Chilean assets operated
with a reduction in their operational workforces of approximately
30% as a result of the comprehensive plan we have implemented for
Covid-19. The operating environment across our Chilean assets is
expected to remain challenging, with reductions in our workforce
forecast to remain substantial during the March 2021 quarter."
On iron ore:
"Western Australia Iron Ore production increased by 6% to a six
month record 128 million tons, reflecting record production at
Jimblebar and strong performance across the supply chain, with
significant improvements in car dumper productivity and
reliability. This was partially offset by weather impacts and the
planned Mining Area C and South Flank major tie-in activity.
Production in the March 2021 quarter is expected to be impacted by
planned Ore Handling Plant maintenance across the mines and
continued Mining Area C and South Flank tie-in activity."
On metallurgical coal:
"Metallurgical coal production decreased by 5% to 19 million
tons. Guidance for the 2021 financial year remains unchanged at
between 40 and 44 million tons with a stronger second half
performance projected in line with our plans. Volumes are expected
to be at the lower half of the guidance range following significant
wet weather impacts during the December 2020 quarter. We continue
to monitor for any potential impacts on volumes from restrictions
on coal imports into China."
Write to Rhiannon Hoyle at email@example.com
(END) Dow Jones Newswires
January 19, 2021 18:19 ET (23:19 GMT)
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