BHP's diversification makes it less exposed to iron ore's earnings than Rio Tinto or Fortescue Metals. Photo / AP
Resources giant BHP Billiton is expected to post a third consecutive profit fall on Wednesday, largely because of last year's huge slump in iron ore prices.
Consensus estimates among analysts for the December 2012 half-year are for a net profit (excluding exceptional items) of US$5.69 billion ($6.7 billion).
That represents
a 43 per cent fall from US$9.9 billion for the December 2011 half, which was a 5.5 per cent fall.
However, the commodity's price has jumped almost 80 per cent to US$150 a tonne since last September's low of US$87. Analysts are predicting underlying earnings before interest and tax (ebit) of US$9.52 billion, a 40 per cent fall from US$15.7 billion for the previous corresponding period.
However, dividend payments are tipped to increase to US57c a share from US55c, in a nod to calls by shareholders to invest less and return more to them.
