Response efforts at Samarco continue with good progress being made on community resettlement, community health and environment restoration.
There were no fatalities at our operated sites in the 2016 financial year.
Underlying EBITDA(1) of US$12.3 billion and an Underlying EBITDA margin(2) of 41% for the 2016 financial year, despite weaker commodity prices which had a negative impact of US$10.7 billion.
Productivity gains of US$437 million(3) achieved for the period and we remain on track for US$2.2 billion of gains over the two years to the end of the 2017 financial year. Conventional petroleum, grade-adjusted Escondida, Western Australia Iron Ore and Queensland Coal unit cash costs(4) declined by 30%, 22%, 19% and 15% respectively.
Capital and exploration expenditure declined by 42% to US$6.4 billion and is expected to decrease further to US$5.0 billion in the 2017 financial year (BHP Billiton share)(5). On a cash basis, capital and exploration expenditure was US$7.7 billion and is forecast to decline to US$5.4 billion in the 2017 financial year.
Reduction in operating costs, the flexibility in our investment program and a targeted reduction of working capital supported free cash flow(2) of US$3.4 billion.
Our balance sheet remains strong, with net debt(2) of US$26.1 billion broadly unchanged from December 2015.
The Board has determined to pay a final dividend of 14 US cents per share, which is covered by free cash flow generated in the current period. In accordance with the Group's dividend policy, this comprises the minimum payout of 8 US cents per share and an additional amount of 6 US cents per share, reflecting continued balance sheet strength and strong free cash flow during the period.
