BHP declares $3.9bn dividend

BHP, which has faced disruptions from Tropical Cyclone Zelia in recent weeks, has declared a $US2.5 billion ($3.94 billion) interim dividend, equivalent to $US0.50 per share.

This comes as the company’s attributable profit jumped 376 per cent from $US0.9 billion in the first half (H1) of the 2023–34 financial year (FY24) to $US4.4 billion in H1 FY25.

Profit from operations climbed 90 per cent from $US4.8 billion in H1 FY24 to $US9.1 billion in H1 FY24.

Despite the jump in profits, revenue decreased $US2 billion between the corresponding periods, which BHP put down to lower iron ore and coking coal prices. Underlying attributable profit fell 23 per cent to $US5.1 billion.

The company said it insulated itself from lower prices through disciplined cost control and a strong operational performance in the half year.

Copper was the big winner, with the company enjoying an average price of $US3.99 per pound ($US3.66/lb in H1 FY24) to post a $US5 billion underlying EBITDA, up from $US3.5 billion in H1 FY24.

“Copper prices in H1 FY25 retreated from the recent peak in May 2024, but remained relatively elevated owing to tight fundamentals, China stimulus plans and US interest rate cuts since September,” BHP said.

“Chinese copper demand exceeded expectations in 2024 as continued strength in power grid investment and consumer durables demand (e.g. air-conditioners and electronics) offset the ongoing weakness in the real estate sector.”

Average iron ore prices dropped 22 per cent for BHP, leading to a $US2.5 billion drop in underlying EBITDA from the company’s Western Australia Iron Ore business (WAIO).

Average coking coal prices fell 23 per cent, contributing to a $US400 million drop in underlying EBITDA from BHP’s coal business.

BHP chief executive officer Mike Henry credited the company’s operational performance.

“The strength of the (half-year) result demonstrates BHP’s operational resilience and its ability to perform through the cycle, with standout production performances in the half from Escondida, WAIO and BMA,” he said.

“WAIO has maintained its lead as the lowest-cost iron ore producer globally, a testament to our ongoing work to drive productivity at our operations.”