BHP Billiton half-year aluminium revenues rose 26% to $2.8 billion

BHP Billiton's aluminium revenues for the half-year ended December 31, 2006, rose 25.5% to $2.828 billion from $2.252 billion for the six months ended December 31, 2005. This is revenue together with share of jointly controlled entities' revenue from external customers.

Underlying earnings before interest and taxes was $840 million, an increase of $434 million or 106.9%, compared with the same period in 2005. "Higher prices for aluminium and alumina had a favourable impact," with the average LME [London Metal Exchange] aluminium price increasing to $2,602/mt, compared with $1,952/mt, BHP said. Half-year production records at Worsley, Australia; Paranam, Suriname; and Hillside, Bayside and Mozal in Southern Africa also spurred the higher results. Exchange rate movements during the period also had a favorable impact on EBIT, BHP said.

Profit from operations in the aluminium segment rose to $822 million in the half-year period from $385 million in the 2005 period.

Earnings were adversely impacted by higher charges for price linked costs, largely LME-linked power. Raw materials and labor costs were also higher, as were depreciation charges associated with new mines in Suriname and the commissioning of the Worsley expansion, it said. "Despite higher costs in some areas, a focus on cost containment and business improvement initiatives achieved success," said BHP.