[miningmx] — HAVING already addressed the market’s concerns over writedowns of
its shale business, focus will turn to BHP’s capex plans and whether any of its large
projects will be deferred in light of weak market conditions when the group reports
annual results on Wednesday.
In a note issued to clients on Monday, RBC Capital Markets said BHP was also
expected to give an update on the proposed disposal of its diamonds business.
“We expect the themes from BHP to remain consistent with the recent H1 results of
its global diversified peers – falling prices and rising costs,’ said RBC analyst Des
Kilalea. “We will also focus on BHP’s capex guidance for FY13 [currently forecast at
$17.1bn], and look for comments on potential capex deferral at its ‘mega projects’
[Outer Harbour, Olympic Dam and Jansen Potash].’
Kilalea said RBC was forecasting overall revenues of $70.8bn against market
consensus at $71.8bn, Ebitda of $32.6bn against consensus at $33.5bn as well as
EBIT of $26.4bn against consensus at $26.9bn.
“Our earnings forecast of $2.62/share takes into account the $3.3bn writedown on
shale and nickel assets, which the market was widely expecting. Excluding the
writedown, we forecast EPS of $3.17 [consensus $3.12/share].”
