The BHP Billiton Limited (ASX: BHP) share price has edged lower in morning trade following the release of its fourth-quarter and full-year update.
At the time of writing the mining giant's shares are down over 1% to $24.81.
What happened?
According to today's release, BHP achieved its full-year production guidance for petroleum and iron ore.
A key driver of this was record-breaking annual production at its Western Australia Iron Ore, Spence, and two Queensland Coal mines.
Unfortunately the same can't be said for its other operations. Copper production fell short of expectations due to industrial action at its Escondida mine and the power outage and unplanned maintenance requirements at Olympic Dam.
Also falling short of expectations was metallurgical coal. Volumes were lower due to damaged rail infrastructure following Cyclone Debbie.
But pleasingly during the second-half BHP enjoyed an increase in the average realised price for almost all commodities. This was most notable with iron ore and LNG, which saw prices rise 13% and 16% respectively.
Looking ahead.
In FY 2018 the company expects petroleum production to fall between 9% and 13% as a result of natural field decline. However, in FY 2019 an expanded rig program is forecast to deliver production growth of approximately 35%.
Elsewhere, copper production is expected to bounce back strongly with a 25% to 35% lift in production.
Should you invest?
Due to its size and scale, BHP would have to be amongst the best options for investors in the resources sector when commodity prices are favourable.
However, as I'm reasonably bearish on both oil and iron ore prices moving forward I won't be rushing in to make an investment in BHP, Santos Ltd (ASX: STO), or Fortescue Metals Group Limited (ASX: FMG) any time soon.
But if you are more positive on the outlook of these commodities, then BHP could be worth considering as an investment today.
