BHP Billiton Limited (ADR) (NYSE:BHP) shares rose despite the company posting its steepest ever full-year loss.
The Australia-based mining giant released fiscal 2016 results Tuesday, revealing a loss of $7.7 billion for the year ending in June. Its net loss amounted to $6.39 billion and overall revenue slumped 31% year-over-year to $30.1 billion.
Declining prices for commodities took a toll on BHP’s results over the year, including lower copper and iron ore prices. The prices of commodities alone resulted in a $10.7 billion cost for the company.
Additionally, the company was hit hard by a disaster that struck in a Brazil dam that resulted in 19 deaths, as well as spillage that polluted hundreds of miles of rivers in the South American nation. Authorities determined that BHP — which co-owns the iron ore mine with Vale SA (ADR) ADR (NYSE:VALE) — is responsible for the damage done.
Brazil filed a $43 billion civil suit against the companies, beginning with a $1.3 billion bill to clean the Doce River’s polluted waters.
“We are clearly very disappointed with this result. However the underlying performance of our business… remains and is getting stronger,” Chief Executive Andrew Mackenzie said.
Although commodity prices are not likely to recover anytime soon, BHP is confident of its business persisting thanks to its supplies of crude oil, copper and other metals.
BHP stock is up 1.6% Tuesday.
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