2017 financial results and Operational Reviews

Our results for the year ended 30 June 2017

This year our performance was strong. Our ongoing focus on productivity and portfolio simplification have allowed us to fully capture the benefit of higher prices. We will carry this momentum into 2018 and beyond.

Key numbers

US$12.6bnFree cash flow up from US$3.4bn in FY2016
US$4.4bnTotal paid to shareholders, up from US$1.6bn last year
US$0.83bnFull year dividend of US$0.83 per share
US$9.8bnNet debt down from US$26.1bn in FY2016

Key FY2017 highlights

Maximising cash flow

US$12.6 billion of free cash flow, our second highest on record, supported by productivity gains and capital discipline.

Increased productivity gains

Over US$12 billion of productivity gains achieved in the last 5 years.

Increased profit

Delivered US$6.7 billion profit this year, up from US$1.2 billion last year1.

Disciplined capital approach

Approved low risk, high-return major development projects in copper and oil.

Learn more about our Capital Allocation Framework.

Higher dividends

Our full year dividend of US$0.83 cents per share is equivalent to a 66% payout ratio.

Improved performance and value

We increased our return on capital to 10%.

Our plan to grow shareholder value

Key activities for FY2018

Maximise cash flow
  • Grow overall production output by 7%.
  • Generate >US$10 billion of free cash flow2.
Capital discipline
  • Average returns of over 20% on development project spend.
  • Focus on smaller, low-cost, high-return projects across the portfolio - to make the most of what we have.
Improved value and returns
Increase return on capital to over 11%3.
Classified our Onshore US asset as non-core and we will be patient as we pursue options to maximise its value.

Key activities - medium term

Maximise cash flow
  • Further reduce costs and embed over US$2 billion of additional productivity gains over the next two years.
Capital discipline
  • Continue to strengthen our balance sheet with a targeted medium-term net debt range of US$10-15 billion.
  • Maintain discipline and keep capital and exploration expenditure below US$8 billion over the next few years.
Improve value and returns
  • Potential to significantly increase our return on capital by FY20224
1 Underlying attributable profit
2 At spot prices
3 At today’s prices
4 At FY17 prices