MELBOURNE, Aug 25 (Reuters) - Australia's South32 Ltd S32.AX , the world's biggest producer of manganese, reported a 76 percent drop in annual underlying profit, hit by weak metals prices, it said on Thursday.
Underlying earnings fell to $138 million in the year to June from $575 million a year ago, beating analysts' expectations around $75 million for the company's first full year since it was spun out of BHP Billiton BHP.AX BLT.L .
A deterioration in commodity markets cut revenue by $1.5 billion, as the sales prices for its commodities tumbled an average of 21 percent, the company said.
South 32 announced a 1 cent dividend. Analysts had expected no dividend.
At the bottom line it reported a net loss due to hefty impairments booked in the first half of the 2016 financial year.