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Overview

Strong operating performance, solid prices and capital discipline in FY2018 resulted in higher profits and a record dividend, while our relentless focus on safety and productivity has released additional volumes across our supply chain.

Chairman Ken MacKenzie

"Our long term view remains positive and we are well placed to meet demand for commodities that the world needs well into the future."

Read our Chairman's Review

CEO Andrew Mackenzie

"This year, we returned US$6.3 billion to shareholders and announced our highest ever final dividend of 63 US cents per share."

Read our Chief Executive Officer's Report

At a glance

BHP has been around for 133 years

BHP has been around for 133 years

We employ over 62,000 employees and contractors

We employ over 62,000 employees and contractors 1

We work in over 90 locations worldwide 1

We paid US$7.8 billion globally in taxes, royalties and other payments 1

Our total economic contribution was US$33.9 billion 1

Dissapointingly, our total recordable injury frequency (TRIF) increased by 5% from last year.

Disappointingly, our total recordable injury frequency (TRIF) increased by 5% from last year. 1

We made a social investment of US$77.1 million to communities around the world.

We made a social investment of US$77.1 million to communities around the world. 1

Also see

Economic Contribution Report 2018

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Sustainability Report 2018

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Water Report 2018

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BHP Annual Report 2018

Annual Report 2018

 
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FY2018 financial results

We had a good year operationally, generated strong free cash flow and paid a record final dividend to shareholders

Strong operating performance, solid prices and capital discipline in FY2018 resulted in a 33 per cent rise in Underlying attributable profit to US$8.9 billion and enabled us to declare dividends of US$6.3bn for this financial year.

Our relentless focus on safety and productivity has released additional volumes across our supply chain, with eight per cent volume growth for the year. This generated free cash flow of US$12.5 billion, from which we invested US$6.8 billion back in our business and reduced net debt by US$5 billion.

We secured a clean, quick, all-cash exit from shale, for a combined consideration of US$10.8 billion payable in cash. Once the transactions are completed we expect to return the net proceeds to shareholders.

More on our financial results or our sustainability performance.

A bucket wheel reclaimer at the Yandi iron ore mine, Western Australia.

Performance summary

Strong operational performance was achieved this year.

Performance summary (cont.)

Strong operational performance was achieved this year.

Also see

Economic Contribution Report 2018

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Sustainability Report 2018

Discover more

Water Report 2018

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BHP Annual Report 2018

Annual Report 2018

 
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Productivity

Strong cost discipline over the past five years has seen continued reduction in unit costs

Cost efficiencies: Focused on further gains

We’ve achieved over $12 billion in productivity gains since FY2012. The combination of our simplified portfolio, streamlined systems, large scale and connected workforce ensures we are well positioned to deliver approximately US$1 billion in additional productivity gains by the end of FY2019, with strong momentum carried into FY2020.

Latent capacity: Attractive returns, limited risk

Our latent capacity options are about unlocking untapped production at low cost, with minimal risk. We have replenished our suite of latent capacity opportunities to optimise and debottleneck our existing mine, rig, port, rail and processing facilities. That means we can achieve more production, or replace production from our existing infrastructure.

Discover more.

Olympic Dam in South Australia is a multi-mineral orebody containing uranium oxide, copper, gold and silver.

Also see

Economic Contribution Report 2018

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Sustainability Report 2018

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Water Report 2018

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BHP Annual Report 2018

Annual Report 2018

 
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Future options

Worked for value, timed for returns

Project pipeline
We have a pipeline of potential growth projects that could create significant shareholder value over the long term, in particular in conventional oil, copper and coal. This includes the Mad Dog Phase 2 project, which has the potential to produce up to 140,000 gross barrels of crude oil per day, and the Spence Growth Option. In the first 10 years of operation, incremental production from the Spence Growth Option is expected to be approximately 185 kilotonnes per annum (ktpa) of payable copper in concentrate and 4 ktpa of payable molybdenum, with first production scheduled for FY2021.

South Flank: creating sustainable value
The BHP Board’s approval of the South Flank project in the central Pilbara, Western Australia was the culmination of a three-year project. The project is very capital efficient and is expected to produce high-quality iron ore for more than 25 years, and create 2,500 construction and 600 ongoing operational jobs.

Exploration: Focused on petroleum and copper
We are focused on finding new oil and copper deposits through targeted exploration. Production of these commodities is declining, while demand is forecast to increase.

In Petroleum, we have made discoveries in four out of the six prospects tested over the past two years, across two key basins. We have also secured more than 100 highly prospective blocks in the Gulf of Mexico, and acquired the Trion discovered resource in Mexico after a competitive process.

Read more about our future options.

Western Australia Iron Ore South Flank
South Flank iron ore project in Western Australia.

Also see

Economic Contribution Report 2018

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Sustainability Report 2018

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Water Report 2018

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BHP Annual Report 2018

Annual Report 2018

 
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Inclusion and diversity

At BHP, we believe that all our people should have the opportunity to fulfil their potential and thrive in an inclusive and diverse workplace. Inclusion and diversity promote safety, productivity and wellbeing.

Inclusion and diversity at BHP

Achieving gender balance
We have an aspirational goal to achieve gender balance globally by CY2025. At the end of FY2018, there were 915 more women at BHP than at the same time in the previous year, contributing to an increase in the representation of women by 1.9 per cent up to 22.4 per cent7.

Flexible working
Flexible work promotes greater workforce diversity. Almost half of our people now work flexibly, up from 41 per cent in FY2017. A further 8.6 per cent indicated that they plan to work flexibly in the next 12 months. Those who are formally working flexibly also report a significant increase in wellness compared to the Group average.

We have seen both long-distance commuters and residential employees at our operations implement flexible rosters, job share arrangements and take breaks from work. This has challenged the prevailing mindset that flexibility is only available to office-based employees. For example, in Western Australia Iron Ore, 28 (seven per cent) of our train drivers are now working flexibly via part-time job sharing arrangements.

Indigenous employment
We aim to provide employment opportunities in our host communities that contribute to sustainable social and economic benefits for Indigenous peoples. In Minerals Australia, Indigenous employment increased from 4.1 per cent to 4.4 per cent, and 25 per cent of all apprentices and 7.2 per cent of graduates were Aboriginal and Torres Strait Islander peoples. In North America, we have focused on working with our contracting partners to support the employment of First Nations and Métis peoples, who comprise 6.2 per cent of our workforce at the Jansen Potash Project.

Read more about our people.

Also see

Economic Contribution Report 2018

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Sustainability Report 2018

Discover more

Water Report 2018

Discover more
BHP Annual Report 2018

Annual Report 2018

 
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