FOR THE YEAR ENDED 30 JUNE 2017
Tragically, we had a fatality at Escondida in October 2016, and more recently at Goonyella Riverside.
Attributable profit of US$5.9 billion, Underlying EBITDA(ii) of US$20.3 billion, Underlying EBITDA margin of 55% and Underlying return on capital employed(iii) of 10% (after tax) for the 2017 financial year.
Productivity gains of US$1.3 billion achieved for the period, with more than US$12 billion accumulated over the last five years. We expect to deliver a further US$2 billion by the end of the 2019 financial year, with gains weighted to the second year.
Net operating cash flow of US$16.8 billion and free cash flow(i) of US$12.6 billion were underpinned by higher commodity prices, strong operating performance and improved capital productivity.
Capital and exploration expenditure reduced by 32% to US$5.2 billion, as we focused on capital efficient latent capacity projects and exercised flexibility in our Onshore US plans.
Capital and exploration expenditure is expected to increase to US$6.9 billion in the 2018 financial year as we focus on our suite of low-risk, high-return latent capacity projects, progress Mad Dog Phase 2 and the Spence Growth Option and ramp-up drilling activity in Onshore US.
In accordance with our capital allocation framework, we expect capital and exploration expenditure to remain below US$8 billion per annum for the 2019 and 2020 financial years.
We strengthened our balance sheet, with net debt of US$16.3 billion reflecting strong free cash flow generation and a favourable non-cash movement in net debt of US$0.6 billion.
The Board has determined to pay a final dividend of 43 US cents per share which is covered by free cash flow generated in the current period. Total dividends of US$4.4 billion determined for the 2017 financial year include US$1.1 billion in additional amounts over and above the 50% minimum payout policy.
In Petroleum, positive drilling results were reported following the discovery of oil in multiple horizons at the Wildling-2 appraisal well in the Gulf of Mexico this month.
We have determined that our Onshore US assets are non-core and we are actively pursuing options to exit these assets for value. In the meantime, we will complete well trials, acreage swaps and assess mid-stream solutions to increase the value, profitability and marketability of our acreage.
In Brazil, progress continues on the social and environmental remediation programs following the Samarco dam failure.