The Financial Report set out on pages 25 to 49 for the half year ended 31 December 2018 has been
prepared on the basis of accounting policies and methods of computation consistent with those applied in the 30 June 2018 Financial Report with the exception of new accounting standards and interpretations which became effective from
1 July 2018. This news release including the financial information is unaudited. Variance analysis relates to the relative financial and/or production performance of BHP and/or its operations during the December 2018 half year compared with the
December 2017 half year, unless otherwise noted. Operations includes operated and
non-operated
assets, unless otherwise noted. Numbers presented 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 Results Announcement:
(i)
|
We use various alternative performance measures to reflect our underlying performance. For further information
on 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 57 to 66.
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(ii)
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Net proceeds received from the sale of Onshore US at 31 December 2018 comprises of US$0.3 billion
from the sale of Fayetteville and US$6.7 billion from the sale of Eagle Ford, Haynesville and Permian. Payment of the deferred consideration is not subject to any conditions and has been recognised as a US$3.5 billion receivable at
31 December 2018.
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(iii)
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Reported for total operations (including Onshore US).
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(iv)
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Copper equivalent production based on 2018 financial year average realised prices. Excludes production from
Onshore US.
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(v)
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Adoption of IFRS 16 Leases is effective for the Group from 1 July 2019 and the potential impact is
currently under review.
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(vi)
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Maintenance capital includes
non-discretionary
spend for the following
purposes: deferred development and production stripping; risk reduction, compliance and asset integrity.
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(vii)
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WGOM OBN 2018 Seismic Permit is OCS Permit
T18-010.
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Forward-looking statements
This
release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; 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; operating costs 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. These statements discuss future expectations concerning the results of operations or financial condition, or provide other forward-looking statements.
These forward-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 materially from those expressed in the statements contained in this release. Readers are cautioned not to put undue reliance on forward-looking statements.
For example, 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. These variations, 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, mines or 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 we produce; 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 any obligation to publicly update or review any forward-looking statements, whether as a result of new information or future events.
Past performance cannot be relied on as a guide to future performance.
No offer of securities
Nothing in this release should be
construed as either an offer, or a solicitation of an offer, to buy or sell BHP securities in any jurisdiction, or be treated or relied upon as a recommendation or advice by BHP.
Reliance on third party information
The views expressed
in this release contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This
release should not be relied upon as a recommendation or forecast by BHP.
No financial or investment advice South Africa
BHP does not provide any financial or investment advice as that term is defined in the South African Financial Advisory and Intermediary Services
Act, 37 of 2002, and we strongly recommend that you seek professional advice.
BHP and its subsidiaries
In this release, the terms BHP, Group, BHP Group, we, us, our and ourselves
are used to refer to BHP Group Limited, BHP Group Plc and, except where the context otherwise requires, their respective subsidiaries as identified in note 27 Subsidiaries in section 5.1 of BHPs 30 June 2018 Annual Report on
Form
20-F.
Notwithstanding that this release may include production, financial and other information from
non-operated
assets,
non-operated
assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to our operated assets unless otherwise stated.
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