Robust financial results reflect record production and substantial productivity gains offset by lower commodity prices.
Underlying EBITDA(1) decreased by 16% to US$28.4 billion. The Group's Underlying EBIT margin(2) of 33% was supported by a US$2.7 billion reduction in controllable cash costs(3). This was offset by weaker commodity prices, which reduced Underlying EBIT(1) by US$8.9 billion.
Attributable profit (excluding exceptional items)(2) of US$11.8 billion was negatively affected by a temporary increase in the Group's effective tax rate and financing charges incurred managing interest rate exposure on recently issued debt securities.
Exceptional items of US$922 million (after tax) contributed to the 29% decrease in Attributable profit to US$10.9 billion.
A targeted divestment program continues to realise significant value for shareholders with major transactions totalling US$6.5 billion announced or completed during the period.
Net operating cash flow(4) of US$18.3 billion and gearing of 29% demonstrates the strong financial position of the Company.
Our progressive base dividend increased by 4% to 116 US cents per share.
