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BHP (NYSE:BHP) trades ~2% lower in Australian trading after reporting a 32% decline in H1 net profit, reflecting a downswing in prices for iron ore, copper and other industrial metals during the six-month period.
BHP (BHP) said it earned a net profit of $6.46B in the half-year through December following a $9.44B profit billion in the same period a year earlier during an environment of stronger strong commodity prices.
H1 underlying profit attributable from continuing operations totaled $6.6B, compared with $9.72B in the previous period and slightly below the analyst consensus estimate of $6.82B.
The average price BHP (BHP) received for its iron ore fell 25% from the year-prior period, and the average copper price dropped 19%.
BHP’s (BHP) results also were weighed by significant wet weather in its coal assets that slowed production and higher unit costs on surging inflation and difficulties in securing sufficient labor.
The world’s largest miner by market value also declared an interim dividend of $0.90/share, compared with $1.50/share a year earlier.
“We are positive about the demand outlook in the second half of FY23 and into FY24, with strengthening activity in China on the back of recent policy decisions the major driver,” CEO Mike Henry said.
BHP’s (BHP) U.S.-listed shares rose 8% so far this year and more than 9% during the past year.
