Record profits for BHP Billiton

This morning, BHP Billiton announced half year pre tax profits of $14.1bn. Nick Raynor, investment adviser at The Share Centre, explains what this means for investors.

"This morning marked a milestone for BHP Billiton, as it didn't just announce its half year results, it also revealed its biggest ever profit - jumping 59% to $14.1bn on the years figures. 

"With BHP planning to spend a further $10bn on a share buy-back programme, investors look set to benefit, safe in the knowledge that they will not be spending money on expensive acquisitions.  Since 2004, BHP will have spent a total of $22.6bn on share buy-back programmes.

"Over the next five years, BHP intends to invest a further $80bn in projects, either on acquisitions or further development of existing operations.  This plan is set to provide investors with a constant stream of commodities, making it a solid long term investment option.

"We believe the commodity market as a whole is fairly robust.  Demand is still high and even though there are huge amounts of investment in the industry, a mine cannot just be opened - therefore the impact on investors is many years down the line. We continue to list BHP Billiton as a ‘buy' for investors seeking long term return and a rounded approach to investing in commodities."