BHP Billion shares finished a touch higher at $30.10 after a quarterly production report that left analysts a bit perplexed about what it means.
The shares ended just 10c higher, something that reflected the confusion.
Cyclones cut iron ore output in the March quarter and maintenance work trimmed nickel output.
It announced record quantities of natural gas, alumina, aluminum, copper, nickel, iron ore and manganese ore which were produced in the nine months to March.
But the actual March quarter figures were a bit all over the place.
The company said record year to date production had been achieved on the North West Shelf Venture thanks to strong demand, as well as at the Samara and Escondido operations in Pakistan and Chile respectively.
In the March quarter natural gas production rose 14 per cent from the March quarter of 2006, and was up two per cent for the nine-months.
Total production of petroleum products rose six per cent and one per cent for the nine-month period.
Copper, which is the company’s major asset, saw a four per cent rise in the nine months to 908,000 tonnes and production in the quarter up 22 per cent to 357,600 tonnes.
“Record year to date (in copper) and quarterly production reflecting the successful ramp up of the Escondida Sulphide Leach Project and Spence (both Chile),” BHP Billiton said.
“During the quarter Spence produced 33,500 tonnes, which is equivalent to 67 per cent of nameplate capacity on an annualised basis.”
Alumina production rose one per cent during the quarter to 1.085 million tonnes and was six per cent higher in the nine-month period to a record 3.316 million tonnes.
Aluminium production rose one per cent in the March quarter to 331,000 tonnes and was two per cent higher in the nine-months to a new high of 1.006 million tonnes.
BHP Billiton’s quarterly report released was perhaps more notable for its omissions than its inclusions. No warnings of cost problems or blow outs except for the budgets of a couple of oil projects being reviewed, one in the US and one off WA.
BHP produced 22.8 million tonnes of iron ore during the quarter, a fall of 10 per cent on the December quarter thanks to three cyclones in the quarter. Nickel output fell 5 per cent to 45,800 tonnes due to scheduled maintenance at the Kwinana refinery near Perth and thermal coal shipments from the Hunter Valley fell during the quarter because of the delays at the Port of Newcastle.
Analysts were mixed, some saying the performance in copper will mean higher earnings, and others claimed it was weaker than expected.
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Meanwhile oil and gas group, Santos posted higher first quarter production but lower revenues, thanks to lower realised prices for its liquids products.
The company says that the March quarter saw production rise five per cent to 14.5 million barrels of oil equivalent (BOE), reflecting output from new projects.
“This record first quarter production was achieved due to new production from the Bayu-Undan LNG, Maleo gas and Casino gas projects, although this was partially offset by the impact of cyclones on Western Australian oil production during the quarter,” Santos said in its quarterly report released on Tuesday.
But revenue fell seven per cent to almost $581million.
Santos said that although it realised lower liquids prices, thanks to lower oil prices and the stronger Australian dollar, it did see a four per cent rise in average realised gas prices to $3.83 per gigajoule (GJ), year on year.
“This is a strong result for Santos, with production up on last year, notwithstanding the impact of cyclones during the period,” managing director John Ellice-Flint said in the statement.
“Significant progress was also made during the quarter with the completion of a new export pipeline and installation of additional compression at the Fairview field, which will see coal seam gas production ramp up further during the second quarter.
“Since October 2005, Santos has doubled Fairview production from 27 terajoules per day (TJpd) to 55 TJpd and our target is to lift production towards 70 TJpd during the second quarter.”
Mr Ellice-Flint also said Santos is seeing continued promising results for the Cooper Basin Oil Project, with a drilling success rate of 88 per cent during the quarter.
The company said that other significant activities during and subsequent to the March 2007 quarter included:
Monitoring of the Sidoarjo mudflow incident in the Brantas PSC in Indonesia (Santos non-operating 18% interest). A net provision of A$67 million (after recognition of insurance proceeds) was recorded as at 31 December 2006.
Further announcements in relation to Santos’ share of potential costs relating to this incident will be made as definitive information becomes available and has been evaluated.
The award of two offshore deep water exploration blocks in the Bay of Bengal, India.
The signing of a three year, $90 million gas supply contract from the John Brookes gas field offshore Western Australia.
The commencement of Front End Engineering Design (FEED) studies for the Henry gas field, offshore Otway Basin, and the Kipper gas field, offshore Gippsland Basin, both in Victoria.
The signing of a PNG LNG cost sharing agreement with ExxonMobil and Oil Search.
