BHP annual profits rise fourfold

World number one mining company BHP posted a fourfold rise in underlying profits on Tuesday in Australia of $6.7 billion.

But event that stellar number was below analysts' forecasts, as was the Melbourne-based company's full year dividend of US$0.83 cents per share, equivalent to a 66% payout ratio.

Net debt was reduced by 37% or nearly $10 billion to $16.3 billion. The company said it expects to allocated less than $8 billion per year over the next year on capital expenditure.

"Strong momentum will be carried into the 2018 financial year, with volume growth of 7% and further productivity gains expected," Chief Executive Andrew Mackenzie said in a statement.

Last week BHP greenlighted the long-awaited $2.5 billion expansion of its Spence copper mine in Chile, which will add another 50 years to the operation’s life.

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