BHP Billiton posts record annual loss

Melbourne

BHP Billiton reported a record US$6.4 billion annual loss on Tuesday, hammered by a bad bet on shale, a dam disaster in Brazil and a commodities slump, but said it expects its cash flow to more than double this year.

The world's biggest mining company said that with cost cuts and a reduction in net debt it expects to generate more than US$7 billion in free cash flow in the year to June 2017, at current prices for iron ore, copper, coal, oil and gas. "While commodity prices are expected to remain low and volatile in the short to medium term, we are confident in the long-term outlook for our commodities, particularly oil and copper," said chief executive Andrew Mackenzie.