Net profit for the six months ended December 31, 2006 jumped to $US6.2 billion ($A7.9 billion), up from the $4.4 billion reported in the previous corresponding period.

BHPB recorded a 21.7% increase in revenue to $18.5 billion. Its interim dividend for the current period is US20c fully franked, up from the 17.5c reported in the previous corresponding period.

The corporation’s petroleum division was the second biggest contributor after the base metals unit, increasing first half underlying earnings before interest and tax by 12.3% to $US1.612 billion ($A2.08 billion), or 18% of the total.

“This was due mainly to higher average realised prices for most petroleum products, with higher average realised oil prices per barrel of $US63.77 (compared with $US58.25), higher average realised natural gas prices of $US3.27 per thousand standard cubic feet (compared with $US3.13) and higher average realised liquefied natural gas prices of $US7.44 per thousand standard cubic feet (compared to $US6.81),” the company said.

“Higher sales volumes due to timing of liftings more than offset slightly lower overall production volumes due to natural field decline and the September 2005 hurricane-related loss of the Typhoon platform [in the Gulf of Mexico].”

BHPB said first half petroleum exploration expenditure charged to profit was $US154 million, up from the previous corresponding period’s $US123 million. This included the additional write-off of $US43 million of previously capitalised expenditure. Gross expenditure on exploration of $US159 million was $US92 million lower than the corresponding period due to timing of spending on exploration and appraisal drilling activity in the Gulf of Mexico.

The company also said improved uptime had mitigated mature natural field declines, keeping them down to 3.3%.

BHPB said its strong project pipeline offered many organic growth options. These included the Pyrenees and Stybarrow oil fields in northwest Australia and the Atlantis South, Neptune and Shenzi fields in the Gulf of Mexico. The company also announced that this month it had completed the acquisition of the Genghis Khan oil field, also in the Gulf of Mexico.

BHPB was bullish about the outlook for the global economy, forecasting continued gross domestic product growth in China, strong performance in Europe and improving confidence in the US.

“A healthy corporate sector, accommodative monetary policies and ample liquidity continue to provide support [but] tight labour market conditions and falling unemployment rates continue in a number of regions,” it said.

BHPB said in the short-term it expects global growth to moderate, but the economic outlook remains “healthy”.

“While we expect growth for the US economy to be below the rate in 2006, a soft landing in the housing sector, strong capital investment and an easing of energy prices should result in a growth rate consistent with long-term trends,” it said.

“Strong economic activity in Western Europe and an improvement in Japan’s economic outlook should lessen the impact of any slowdown in the US. China is set to continue as the main driver of demand, but more mature markets may also lend support, especially Europe and Japan.”

The company said while it expects a constructive environment, the path of the US economy was uncertain.

“The global impact of a slowdown in the US is expected to be lower than generally assumed and we do not anticipate a return of prices to longer run averages over the medium term,” it said.

BHPB also today announced that Goodyear will retire from the company by year-end.

Goodyear said it had been a privilege and pleasure to work for the company during a “tremendous” period in its history.

“But after nine years with the company, and what will be five years as CEO, I have decided it is an appropriate time for the organisation to transition to the next generation of leadership,” he said.

Chairman Don Argus said BHPB would use the time before Goodyear’s retirement to implement its succession plan.

“One of Chip’s significant contributions is that he has developed a number of strong internal candidates who will be considered for the role,” Argus said.

“As shareholders would expect we will also consider external candidates.”

Several commentators have said that the most likely candidate to replace Goodyear would be Marius Kloppers, president of BHPB's nonferrous metals business.