Resources and mining companies making news include BHP and Rio Tinto releasing their March quarter production results. Fortescue and Woodside say cyclones are to blame for a drop in production and Santos confirms full-year output guidance.
BHP posts mixed Q3 output results
BHP Billiton Limited (ASX:BHP, NYSE:BHP) has released its March quarter production report. The global miner produced 38 million tonnes of iron ore during the three month period. The result was 14 per cent higher than the March quarter the year before but 8 per cent lower than the December quarter, with cyclone activity taking its toll. Metallurgical coal production rose 10 per cent compared with the same period the year before, but fell 14 per cent when compared to the December quarter, with Queensland coal production impacted by heavy rainfall and industrial action.
Rio Tinto’s output rises
Rio Tinto Limited (ASX:RIO, NYSE:RIO) expects to produce 250 million tonnes of iron ore this year after reporting first quarter output for its prime commodity rose 10 per cent to 59 million tonnes. The global miner describes its March quarter production results as solid, achieving increased production of iron ore, coal bauxite, alumina and titanium dioxide. Rio says the improvement was due to high operating performance and reduced impact from severe weather. However, the results missed analyst forecasts, with the miner shipping less than expected iron ore and posting greater than expected falls in copper production.
Fortescue blames cyclones
Cyclone activity in Western Australia has been blamed for Fortescue Metals Group Limited’s
(ASX:FMG) missing its guidance and posting a 15 per cent fall in its third quarter iron ore production, compared to the quarter before. Compared to the year before, quarterly production increased 41 per cent on the back of the Pilbara focussed miner’s expansion plans in the region. Fortescue has today confirmed annual production guidance of 55 million tonnes per annum, and, that its expansion to 155 million tonnes is on budget and schedule. The miner also cautioned it expects to launch a constitutional challenge to the mining tax within weeks.
Woodside production drops
Woodside Petroleum Limited’s
(ASX:WPL) oil and gas production dropped 10 per cent in the first quarter as its operations were hit with cyclonic activity. However, higher oil prices boosting first-quarter revenue by 20 per cent to about $1.2 billion. Woodside has confirmed it remains on track to deliver its full-year production target of up to 81 million barrels of oil equivalent. The company has also revealed it’s sold a gas permit stake to support its $15 billion Pluto project.
Santos confirms output guidance
Santos Limited
(ASX:STO) has confirmed its full-year output guidance after boosting its first quarter production and sales revenue. The oil and gas company produced 13 per cent more barrels of oil equivalent in the quarter compared to the year before. Chief executive David Knox says higher production and strong oil and gas prices have delivered a solid first quarterly result for Santos, setting a strong foundation for the year ahead.
“Our production compared to last year has increased as a result of adding four new projects to the base business,” added Mr Knox.
Resources News
Infrastructure projects worth $20.4 billion began in the December quarter, according to Australian Bureau of Statistics figures. This was down from $36.4 billion last quarter, boosted by the start of the Gladstone LNG facility. Resources commencements, excluding oil and gas, rose to a value of $5.5 billion in the fourth quarter up from $3.8 billion in the third quarter. The work pipeline is now at $125 billion, up from $112 billion a year before, and $87 billion two years ago. The total value of LNG projects under construction or approved has risen to approximately $180 billion.
Melissa Beaumont Lee
