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BHP reports stronger full-year results as copper overtakes iron ore
BHP said copper delivered record underlying EBITDA of $18.2 billion, helping lift underlying profit 30% to $13.2 billion.
BHP posted a stronger full-year performance for the year ended June 30, with results showing a shift in what is driving earnings. According to Yahoo Finance, copper overtook iron ore as BHP’s biggest earnings driver for the first time.
The company reported revenue up 15% to $58.8 billion, while underlying EBITDA rose 27% to $32.9 billion. Net operating cash flow increased 17% to $21.8 billion, and underlying profit climbed 30% to $13.2 billion, ahead of expectations.
BHP’s attributable profit rose 9% to $9.83 billion after exceptional items, including a previously announced $2.3 billion write-down on the Jansen potash project and costs tied to the Samarco dam failure. Copper generated record underlying EBITDA of $18.2 billion at an about 70% margin, while iron ore also stayed highly profitable, with West Australian Iron Ore reaching record production and shipments.
BHP produced about 2 million tonnes of copper for the second straight year, supported by operations including Escondida in Chile, and realized prices increased sharply during the year. The miner cut net debt to $8.7 billion and declared a final dividend of $0.99 a share, taking the full-year payout to $1.72 a share, the highest in four years and equal to a 72% payout ratio.
Latest closeCopper $6.544 ▼0.8%