BHP
Billiton's half-year production records for petroleum, iron ore,
nickel and zinc were helped by the strong recovery across the commodity
suite driven by demand from China and restocking in the developed world.
"While not storming home quite as strongly as Rio
Tinto, BHP finished the first half in marginally better production
shape than expected," Morningstar senior equities analyst Mark Taylor
said. (Read
our reaction to Rio's quarterly results here.)
"Very strong performances from the petroleum and nickel divisions more
than offset weaker-than-anticipated copper and alumina output. Iron ore,
aluminium and coking coal divisions also performed slightly better than
expected," he added.
BHP remained predictably cautious as it reported interim results in
Australia on Wednesday morning, flagging the potential for volatility in
commodity prices in the short term. Uncertainties stem from the expected
withdrawal of government stimulus measures both globally and in China
where steps are being taken to control loan growth.
But Morningstar remains optimistic about the longer-term outlook thanks
to ongoing urbanisation in China and recovering first world economies,
Taylor said.
Read
our long-term analysis of BHP Billiton here.
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