Fuel Your Portfolio With BHP Billiton (NYSE: BHP): The Best-Run Commodities Company In The World

by Tony Daltorio, Investment U Research

Some companies just stand out – both in their own sectors and in the larger market.

Australian firm BHP Billiton (NYSE: BHP) is one of them.

As the largest and most diversified commodities producer in the world, BHP has leading positions in most key, low-cost, metal and mineral deposits in the world.

And as if that weren’t enough, it also has a solid position in oil, thanks to its petroleum division, which had operating profits of $4 billion last year.

Impressively, that total only made the petroleum division BHP’s third-best performer in 2008. Its iron ore segment scooped up $6.23 billion, while base metals enjoyed a $4.62 billion operating profit.

Crucially, that sets BHP’s oil division apart from its competitors. Not only

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OUTLOOK The Alternative Energy industry is going through a recovery after absorbing the global recession and the cascading fall in global crude oil prices. Earlier this year, quite a few alternative energy companies were in the trough. Though these companies have recovered from their lows, their valuations are still significantly lower than their 52-week highs. The growth of alternative energy companies is closely tied to the fortunes of the economy. In its latest release, the Energy Information Administration (EIA) predicted that total U.S. electricity consumption will decline by 3.3% in 2009 before growing by 1.3% in 2010 as the improving economy coaxes a gradual recovery in electricity sales. In fiscal 2008, annual U.S. photovoltaic (PV) installed capacity grew by 63% year-over-year, bringing the cumulative installed capacity to 792MW. According to the Solar Energy Industries Association (SEIA) -- the U.S. trade association representing close to 500 companies ...

Last week, Companhia Paranaense de Energia - COPEL (ELP), posted positive results for the second quarter with a 5.9% increase in revenues (in Brazilian reals). The company has a strong balance sheet with net debt of just R$136 million (US$28 million) at the end of the quarter.   Net income was down 18.9% year over year (in Brazilian reals). The result reflects the slower growth in the market in comparison to the year-ago period due to the impact of the economic crisis on industrial customers.   Residential consumption increased 5.1%, industrial consumption was down 4.8% in the captive market, commercial segment consumption rose 7.3% and rural consumption was up 7.8%. But, power consumption by free customers fell 16.9% year over year due to decrease in power demand from free customers.   Commercial, residential and rural data indicate a good economic environment in the State of Paraná. Moreover, the ...

Our near-term (6-18 months) outlook for the coal industry has improved somewhat from our previous neutral sentiment to a more positive undertone. Based off of various recent economic indicators, the U.S. economy appears to be stabilizing. Although the rest of 2009 is likely to continue on a path of weak steel and electricity demand relative to 2008 levels, several factors should help lift the coal producers in 2010.

Reductions in capex spending from both coal and natural gas producers, the weakening of the U.S. dollar and most importantly, increased steel and electricity consumption in '10 should all be positive catalysts for the coal industry next year.

As stated in earlier outlook summaries, benchmark metallurgical prices for fiscal 2009 have been set around $120/mt -- off markedly from the $300/mt level seen in 2008 but still above historical met price levels. This means that in 2010, producers will still realize triple digit average

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Our near-term (6-18 months) outlook for the coal industry has improved somewhat from our previous neutral sentiment to a more positive undertone. Based off of various recent economic indicators, the U.S. economy appears to be stabilizing. Although the rest of 2009 is likely to continue on a path of weak steel and electricity demand relative to 2008 levels, several factors should help lift the coal producers in 2010.

Reductions in capex spending from both coal and natural gas producers, the weakening of the U.S. dollar and most importantly, increased steel and electricity consumption in '10 should all be positive catalysts for the coal industry next year.

As stated in earlier outlook summaries, benchmark metallurgical prices for fiscal 2009 have been set around $120/mt -- off markedly from the $300/mt level seen in 2008 but still above historical met price levels. This means that in 2010, producers will still realize triple digit average

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Our near-term (6-18 months) outlook for the coal industry has improved somewhat from our previous neutral sentiment to a more positive undertone. Based off of various recent economic indicators, the U.S. economy appears to be stabilizing. Although the rest of 2009 is likely to continue on a path of weak steel and electricity demand relative to 2008 levels, several factors should help lift the coal producers in 2010.Reductions in capex spending from both coal and natural gas producers, the weakening of the U.S. dollar and most importantly, increased steel and electricity consumption in '10 should all be positive catalysts for the coal industry next year.As stated in earlier outlook summaries, benchmark metallurgical prices for fiscal 2009 have been set around $120/mt -- off markedly from the $300/mt level seen in 2008 but still above historical met price levels. This means that in 2010, producers will ...

Last year global oil reserves fell for the first time since 1998, led by declines in Russia, Norway and China.  Russia apparently has no plans to reduce oil production or oil exports in the next three years.  The New York Times reports that the Russian company building the Bushehr nuclear plant in Iran is unsure about when it will open.  Gazprom CEO Alexei Miller has said that the South Stream pipeline should be operational by the end of 2015 and will face no funding difficulties.  Germany's Defense Ministry apparently objects to the Nord Stream pipeline route because it runs through military training areas.  Russia has agreed to take three metric tons of spent fuel from a defunct Serbian nuclear plant to prevent terrorists acquiring it.  Last year Turkmenistan's proved reserves of natural gas tripled.  ...

Next-generation alternative and renewable energy developer New Energy Technologies, Inc. announced that it has filed nine new patent applications with the United States Patent and Trademark Office (USPTO) in order protect novel features of its recently prototyped MotionPower™ technology.

According to the U.S. Energy Information Administration, coal and natural gas generate 70% of the United State’s electricity. The environmental impact of greenhouse gas emissions, rising costs of non-renewable fuels, and the potential doubling of global electricity consumption in the coming years illustrates the need for creative, sustainable methods for generating electricity in the United States. In response, New Energy engineers developed MotionPower™ technologies to generate ‘clean’ electricity by harnessing the kinetic energy of the estimated 250 million registered vehicles operating on America’s roads every day.

Mr. Meetesh V. Patel, President and CEO of New Energy Technologies, Inc. stated, “In recent weeks, our engineers have achieved a major development milestone by completing

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Harbin Electric, Inc., a company focused on developing and manufacturing a wide array of electric motors in the People’s Republic of China, announced that it has inked an agreement with a domestic Maglev technology company to co-develop a linear motor-driven freight train system for coal transportation. First, the two companies plan to build a 850 meter long testing line in a coal mine in inner-Mongolia.

Once the testing line is completed, the project is anticipated to expand to a 32 km long coal transportation line in inner-Mongolia. As terms of the agreement, Harbin Electric will provide linear motor driving systems including the motors’ primary and secondary components for the entire transportation line. For the initial testing line, Harbin Electric will deliver 5 linear motors to be integrated with the train as well as a total of 850 meter long secondary components to be installed on the train track before the end

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As the economy begins its comeback, the utilities companies that will benefit the most are the ones whose stock prices have suffered for being located in poor housing markets and those with significant counter-party risk. These companies lack the stability an investor looks for in utilities companies during a time of economic hardship. However, as the economy begins its turn around, these investments will once again become attractive. A company that fits the aforementioned profile is Sempra Energy [SRE: 44.25, -0.57 (-1.27%)], a diversified gas utility company based in Southern California. Sempra has two core utility subsidiaries in Southern California Gas (SoCalGas), the largest gas utility in the United States and San Diego Gas & Electric (SDG&E), which serves 3.4 million customers in the San Diego area. Combined, these two entities comprise 60% of Sempra’s revenue stream. The remaining 40% comes from its natural gas infrastructure businesses, which includes ...