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BHP (New York Stock Exchange: BHP) is trading ~2% lower in Australian trading after reporting a 32% decline in H1 net earnings, reflecting a drop in iron ore, copper and other industrial metal prices over the trading period. six months.
BHP (BHP) said it made a net profit of $6.46 billion in the half to December following a profit of $9.44 billion in the same period a year earlier during a stronger commodity price environment.
Underlying first-half profit attributable to continuing operations totaled $6.6 billion, compared with $9.72 billion in the prior period and slightly below the consensus analyst estimate of $6.82 billion. .
The average price BHP (BHP) received for its iron ore fell 25% from the prior year period, and the average price of copper fell 19%.
BHP’s (BHP) results were also affected by significant wet weather at its coal assets that slowed production and increased unit costs due to rising inflation and difficulties in securing sufficient manpower.
The world’s largest miner by market value also declared an interim dividend of $0.90/share, compared to $1.50/share a year earlier.
“We are optimistic about the outlook for demand in the second half of FY23 and into FY24, with strengthening activity in China on the back of recent policy decisions as the main driver,” said CEO Mike Henry. .
US-listed BHP (BHP) shares are up 8% year-to-date and more than 9% over the past year.