BHP Billiton has reported a record full year loss of $US6.39 billion ($A8.29 billion) as heavy writedowns and significantly weaker commodities prices hurt its bottom line.

Underlying profit for the year to June 30 was down 81 per cent from a year ago to $US1.22 billion, as lower commodity prices cut $US10.7 billion in earnings, the company said.

The results were slightly better than analyst expectations of a $US7 billion net loss and underlying profit of around $US1 billion.

“The last 12 months have been challenging for both BHP Billiton and the resources industry,” chief executive Andrew Mackenzie said.

“While commodity prices are expected to remain low and volatile in the short to medium term, we are confident in the long-term outlook for our commodities, particularly oil and copper.”

Camera Icon Lower commodity prices, such as iron ore, cut BHP’s earnings by $US10.7 billion. Credit: News Corp Australia

The slide comes on the back of a massive $US7.2 billion writedown in the value of its US shale assets in January, after oil prices slid to their lowest level in more than a decade.

The company will also make a provision of up to $US1.3 billion related to the costs of the Samarco mine dam disaster in Brazil, which killed at least 19 people and polluted a major river valley.

BHP said unit cash costs across the group declined 16 per cent. It expects to deliver another US$1.8 billion through productivity gains in the current financial year.

BHP declared a final dividend of 14 US cents a share, down from 62 US cents a year ago, but in line with its new dividend policy of paying a minimum 50 per cent of underlying profit.

Ahead of the results announcement, BHP shares in Australian trading closed nine cents, or 0.45 per cent higher, at $20.25 each.

BHP’S WORST ANNUAL RESULTS

— Net loss of $US6.39b, vs $US1.91b profit

— Underlying earnings down 81pct to $US1.22b

— Full year dividend down 76pct to 30 US cents per share