BHP has released its 2023–34 financial year half yearly report (H1 FY24) with a strong outlook for the future.
The Big Australian announced an underlying attributable profit of $US6.6 billion ($10 billion) in H1 FY24, in line with the previous years’ profit, though its attributable profit was down 86 per cent to $US900 million ($1.3 billion).
Profit from operations was down 56 per cent to $US4.8 billion ($7.3 billion), though the underlying earnings before interest, taxes, depreciation, and amortisation was up five per cent to $US13.9 billion ($21.2 billion).
Also announced was an interim dividend of $US0.72 per share, which came to a total of $US3.6 billion ($5.5 billion), equating to a payout ratio of 56 per cent.
BHP chief executive officer Mike Henry described the report as showing a “strong underlying financial performance underpinned by reliable operations and disciplined cost control”.
“At our Western Australia iron ore operations, we remain the lowest cost major producer globally and in copper we set new production records at our operations in South Australia and Chile,” he said.
“In South Australia, our consolidated copper province has performed strongly and we are pursuing future growth options.”
Turning to the current nickel slump, Henry remained optimistic in the ability of the company to weather the storm and alluded to recent relief initiatives from the Federal Government.
“We’ve seen volatility in global commodity prices and demand in the developed world has been softer than expected,” he said.
“That said, China demand is healthy despite weakness in housing and India remains a bright spot.
“In Australia, the mining industry is facing near-term headwinds in developing resources and it’s essential that the right industrial relations and fiscal settings are in place to support the sector’s ability to compete and win in global markets.
“Long term, the mega-trends playing out in the world around us continue to underline our confidence in future demand for steel, non-ferrous metals and fertilisers.”
The ABC reported last Friday BHP is considering closing its Nickel West operations, but the Federal Government’s announcement that nickel will join the critical minerals list has opened the sector up to billions in relief.
No word yet from BHP on next steps for Nickel West, though the major did incur impairment on its nickel assets in the H1 FY24 results.
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