Last checked at 
(Alliance News) -Â South32 Ltd saw full-year profit dive, the miner said Thursday, but it has extended its share buyback to give it "flexibility to re-commence" the programme.
Revenue for the financial year to June 30 was USD6.08 billion, down 16% on USD7.27 billion the year before. Expenses excluding net finance costs fell at a slower pace, down 14% to USD6.11 billion, while net finance cost rose 65% to USD139 million.
This led to pretax profit slumping 85% to just USD122 million from USD803 million.
A "deterioration" in commodity markets was the primary driver of the sharp fall in profitability, said the company, which was spun out from BHP Group PLC in 2015.
South32 declared a 1.0 cent final dividend which, combined with its interim dividend, brings the payout for the year to 2.1 cents, down 73% on the year before. In addition, South32 declared a special dividend of 1.1 cents alongside its half-year results.
"Our strong financial position and disciplined approach to capital management has supported the return of USD424 million to our shareholders in respect of the year, including the board's resolution today for a USD48 million fully franked final dividend. While our on-market share buy-back remains suspended with USD121 million remaining, it has been extended by 12 months to September 2021, giving us the flexibility to re-commence the program as Covid-19 related operational risks subside and our financial performance improves," said Chief Executive Graham Kerr.
On the financial year ahead, South32 said it is "well placed" to deliver a further reduction in capital expenditure and operating unit costs across its operations. By exiting low returning businesses and simplifying structures, South32 expects to deliver another USD50 million in annualised savings from the 2022 financial year.
Kerr said: "Looking to next financial year we are taking further action as we continue to navigate a period of potentially extended market volatility and lower commodity prices. We expect cost efficiencies and further simplification of our group, combined with higher volumes to result in lower operating unit costs across the majority of our operations."
Shares in South32 were up 0.6% in London at 118.04 pence, while in Johannesburg the stock was flat at ZAR26.50.
By Lucy Heming;Â lucyheming@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.