Mackenzie rings the changes at BHP

The full-year improvement was achieved despite prices for some of the group’s most important commodities – iron ore and copper – trailing away over the financial year. In fact, lower average prices weighed on underlying profits to the tune of $3.4bn. But the group countered this by boosting production volumes, with major projects ramping up in the second half.

Just as important, a renewed focus on capital discipline under the auspices of chief executive Andrew Mackenzie is starting to deliver - albeit at a slower lick than at chief rival Rio Tinto (RIO). Nonetheless, there was a marked increase in free cash flow during the period, as the group pared back its capital and exploration spending by a third to $15.2bn. Once the non-core assets are eventually spun off, Mr Mackenzie believes further savings of $3.5bn are achievable by the end of the 2016-17 financial year.

Investec anticipates cash profits of $32.6bn next year, along with EPS of 253¢.