BHP spin-off South32 is looking to strip out a further $US350 million ($A480 million) in costs and has flagged a first dividend for shareholders in early 2016.
South32 reported a maiden net profit of $US28 million ($A38 million) for the year to June 30, down from $US64 million a year ago when its operations were still under the BHP umbrella.
Underlying earnings were up 41 per cent to $575 million and chief executive Graham Kerr attributed the improvement to cost cutting.
He flagged plans to reduce controllable costs by $US350 million a year by 2018.
"The implementation of our regional operating model and broader cost saving initiatives are already delivering strong results," he said.
South32 did not declare a dividend for the year, but Mr Kerr said the company intends to distribute at least 40 per cent of underlying earnings as dividends every six months from now on.
The company's net debt stands at $US402 million, and it could draw upon another $US1.5 billion in outstanding credit.
"South32's strong balance sheet is a key point of differentiation and we value it highly," chief financial officer Brendan Harris said.
"Our simple capital management framework and dividend policy ensures our shareholders will be rewarded as financial performance improves."
South32 closed 11.5 cents lower at $1.405.
SOUTH32'S FIRST FULL YEAR
* Net profit down 56pct to $US28m
* Revenue down 7pct to $US7.743b
* No dividend
Share
