BHP profit dives, Chile tax grab takes toll
BHP’s annual underlying profit slumped 37 per cent to $US13.4 billion ($20.9 billion) as commodity prices came back to earth after 2022’s record result.
The decline was driven by weaker prices for iron ore, copper and coking coal, plus a rare decline in sales volumes of BHP’s flagship product, West Australian iron ore. BHP shareholders will receive a US80¢ final dividend, taking the full-year total to $US1.70 a share.
BHP shareholders will receive a US80¢ final dividend. Michele Mossop
Both the profit and dividend result were weaker than analysts had expected. Consensus measured by Visible Alpha was $US13.76 billion for underlying earnings for the year to June 30. Analysts had expected total dividends of $US1.72 a share.
While dividends for 2022-23 were 48 per cent lower than last year’s record payout, they were still the fourth-highest in BHP’s history.
BHP is continuing with efforts to sell the Daunia and Blackwater coking coal mines in Queensland.
The 280.7 million tonnes of iron ore sold in the year was BHP’s weakest performance in four years as weather disruptions and port maintenance hampered BHP’s output.
But there was a silver lining: the miner ended the year with close to 4 million tonnes of iron ore stockpiled in China which, in theory, could be monetised swiftly, suggesting the sales figure does not fully reflect the performance of the WA iron ore division.
BHP recorded $US499 million of exceptional items on Tuesday related to a new tax regime in Chile, where it mines copper, and the ongoing cost of reparations for the fatal Samarco dam disaster in 2015. BHP’s accounts contain a $US3.6 billion provision for expected future costs at Samarco; that provision does not include possible penalties that could arise
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