BHP FY Profit Climbs

BHP (BHP.AX,BLT.L,BBL,BHP) reported that its attributable profit for the year ended 30 June 2022 climbed to US$30.9 billion from US$11.3 billion in 2021. Basic earnings per share were 610.6 US cents up from 223.5 US cents in the prior year.

The latest year results included an exceptional gain of US$7.1 billion, where as the prior year results included an exceptional loss of US$5.8 billion.

The exceptional gain of US$7.1 billion reflected a net gain on merger of BHP’s Petroleum business with Woodside of US$8.2 billion which is reported as discontinued operations, and a gain on disposal of BMC of US$840 million. It was partially offset by the current year impact of the Samarco dam failure of US$1.1 billion, corporate structure unification costs of US$428 million and an impairment of US deferred tax assets no longer expected to be recoverable after the Petroleum demerger of US$423 million.

Annual underlying attributable profit also rose to US$23.8 billion or 470.6 US cents per basic ordinary share from the prior year’s US$17.1 billion or 337.7 US cents per basic ordinary share, reflecting disciplined cost and production performance to realize higher margins due to strong commodity prices.

BHP said that it will appoint Edgar Basto as Chief Operating Officer and Geraldine Slattery as President Australia, effect on 1 October 2022.

The company said it will pay a final dividend of US$1.75 per share or US$8.9 billion, which includes an additional amount of US$0.60 per share (equivalent to US$3.0 billion) above the 50% minimum payout policy. Total cash dividends announced of US$3.25 per share, equivalent to a 77% payout ratio.

BHP expects China to emerge as a source of stability for commodity demand in the year ahead, with policy support progressively taking hold. At the same time, it expects to see a slowdown in advanced economies as monetary policy tightens, as well as ongoing geopolitical uncertainty and inflationary pressures.

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