BHP has unveiled its half-yearly report for the 2023–24 financial year (H1 FY24), painting a promising picture for its prospects.
The mining giant reported an underlying attributable profit of $US6.6 billion ($10 billion) during H1 FY24, mirroring the previous year’s performance. However, its attributable profit saw a significant decline of 86 per cent to $US927 million ($1.42 billion).
Profit from operations also experienced a downturn of 56 per cent, amounting to $US4.8 billion ($7.3 billion). Nevertheless, there was a silver lining as the underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by five per cent to $US13.9 billion ($21.2 billion).
The company declared an interim dividend of $0.72 per share, totalling $US3.6 billion ($5.5 billion) and reflecting a payout ratio of 56 per cent.
BHP’s CEO, Mike Henry, characterized the report as showcasing a “strong underlying financial performance” driven by dependable operations and disciplined cost management. He highlighted the company’s status as the lowest-cost major producer globally in its Western Australia iron ore operations and its achievement of new production records in copper mining operations in South Australia and Chile.
Despite challenges such as the current nickel downturn, Henry expressed confidence in BHP’s resilience and referenced recent support measures from the Australian Federal Government. He acknowledged global commodity price volatility and softer demand in developed nations but noted robust demand from China and India.
Henry emphasized the importance of favourable industrial relations and fiscal policies in Australia to bolster the mining sector’s competitiveness in global markets. He underscored the company’s confidence in long-term demand trends for steel, non-ferrous metals, and fertilizers.
While BHP recently considered closing its Nickel West operations, the inclusion of nickel in the critical minerals list by the Federal Government has opened avenues for significant relief, potentially amounting to billions of dollars for the sector.
