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Mining giant BHP raises dividend after profit jumps 31%

18/02/2014 by

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The world’s biggest mining company BHP Billiton has posted a 31% jump in profit due to improvements in its iron ore, coal and petroleum businesses.

Underlying first half profit was $7.8bn (£4.7bn), beating analyst forecasts for a $6.9bn profit.

The Melbourne-based company also increased its annual payment to shareholders by 3.5% and signalled that may rise further this year.

BHP shares rose by nearly 2% in Sydney trading after its earnings release.

The company also said it thought the global economy would recover further over the rest of this year.

“In the developed world, Europe experienced a period of relative stability while the United States economy accelerated, with continued improvement in private sector balance sheets a key supporting factor.

“The balance of risk to global growth is skewed to the upside, particularly given the broad based alignment of macroeconomic indicators in the major developed economies,” BHP said in a statement.

Record output

BHP earns most of its money from the production of iron ore, which is used in the production of steel.

This article has been extracted from www.bbc.co.uk, please click on this link to read the article in full http://www.bbc.co.uk/news/business-26236389

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