(MENAFN- ProactiveInvestors)BHP Billiton (LON:BLT) was under pressure as the prices of iron and oil lurched downward again while the company estimated lower production this year in a number of areas. The resources giant surpassed its own forecasts in the year to June with overall production 9% higher. Iron ore output from Western Australia rose by 14% to 233Mt copper was flat at 1.7Mt while petroleum production was a record at 256mln barrels. Guidance for this year disappointed some analysts even so with petroleum production slated to be 7% lower at 237MMboe and copper 12% lower at 1.5Mt. Iron ore production will rise by 6% to 247Mt but largely the result of productivity improvement as cash costs drop to US$16 per tonne. Impairments in 2015 will cost up to US$4.5bn with US$2bn onshore US oil assets and US$2.1bn for the businesses demerged into South32. Analysts said it was a mixed update. Canaccord commented that after a strong 2015 most commodities the weaker volumes in 2016 would affect sentiment and the shares were 4.5% lower at 1196p. Investec said it was a very good iron ore result from BLT given Rio Tinto's (LON:RIO) weather related issues in the same period. 'While we expect earnings downgrades for BLT on the back of this the tempered production volumes could be seen as supportive of pricing (especially copper) and an indication that the market is nearing the bottom.'
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