Mining Giant BHP Billiton Reports Net Loss Of $6.4bn For 2016

FTSE 100 mining firm BHP Billiton (NYSE: BBL - news) has reported an annual net loss of $6.4bn (£4.95bn) - a year after it enjoyed a net profit of $1.91bn (£1.48bn).

The Anglo-Australian company said the result for the fiscal year ending 30 June came from a 31% fall in revenue to $30.1bn (£23.3bn).

It marks the worst full-year results in the company's history.

It cited a number of reasons, including the $2.2bn (£1.7bn) costs of a fatal dam disaster in Brazil.

The firm, which also has substantial oil and gas interests, also took a $4.9bn (£3.8bn) impairment on the value of its onshore gas operations in the US.

"Low and volatile" commodity prices cost the mining giant $10.7bn (£8.25bn).

In 2013-14, BHP posted a net profit of $13.8bn (£10.6bn). It posted its best ever results of $23.6bn (£18.2bn) in 2010-11.

The collapse of the dam, at an iron mine near Mariana in southeast Brazil last November, killed 19 people and caused the worst environmental disaster in the country's history.

It unleashed a torrent of waste mining mud - with towns up to 50 miles away also slammed by the deluge.

The mine was operated by Samarco - a partnership between BHP and Brazilian firm Vale.

"The last 12 months have been challenging for both BHP Billiton and the resources industry," BHP's chief executive Andrew Mackenzie said in a statement.

"Nevertheless, our results demonstrate the resilience of our portfolio and the diverse ways in which we can create value for shareholders despite low commodity prices."

BHP slashed its payout, declaring a final dividend of 14 cents, compared to 62 cents last year.

It followed the company's decision in February to scrap a pledge to shareholders to keep its payouts steady or rising.

The same month saw global ratings agency Standard & Poor's downgrade BHP's rating from A+ to A.