BHP to spin off assets as annual net profit soars

SYDNEY, Aug 19 (AFP) : Global mining giant BHP Billiton posted a 23.2 per cent jump in annual net profit Tuesday and said it will create a new independent company by spinning off non-core assets to reduce costs and boost productivity.

The $13.83 billion result in the year to June 30 -- the first time BHP has posted a year-on-year increase in net profit since 2011 -- came as spending cuts and strong production numbers offset weaker commodity prices.

"With robust volume growth and further productivity gains expected, we remain confident in the outlook for the group," chief executive Andrew Mackenzie said.

BHP had reported a record net profit of $23.65 billion in 2011.

The world's biggest miner said to maintain its dominant position it planned to demerge parts of its business to focus exclusively on its core long-life operations -- iron ore, copper, petroleum, coal and potash.