BHP has reported a 23% decline in underlying profit to $5.08bn (A$8bn) in the first half of 2024 (H1 2024) ending 31 December, primarily due to lower iron ore and steelmaking coal prices, partially offset by higher realised copper prices.
The company’s revenue dropped by 8% to $25.2bn, while underlying earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 11% due to lower revenue. The underlying EBITDA margin stood firm at 51.1%.
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BHP has reported a profit of $4.4bn attributable to shareholders for H1 2024, up from $900m in the previous year, showcasing its strong operational performance and effective cost management.
The company anticipates an adjusted effective tax rate for the financial year 2025 (FY25) to be within the 33–38% guidance range.
Furthermore, net operating cash flow was impacted by the lower realised prices, particularly in iron ore, generating free cash flow of $2.6bn after investment of $5.2bn in line with the Capital Allocation Framework.
The company’s net debt increased by $2.7bn to $11.8bn, reflecting dividend payments to shareholders ($3.9bn) and non-controlling interests ($1.1bn), along with $600m in Samarco settlement obligations.
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By GlobalDataCapital and exploration expenditure went up by 10% to $5.2bn.
In terms of production, copper output rose by 10% to 987,000 tonnes (t), with a 22% increase at Escondida in Chile.
Iron ore production saw a modest 1% increase to 131t from 129t. However, the production of steelmaking coal dropped by 21% to 8.9t from 11.3t. Energy coal also dipped 1% to 7.4t.
BHP anticipates copper production in a range of 1.85mt–2.05mt and iron ore production in a range of 255t–265.5t in FY25.
BHP declared an interim dividend of $0.50 per share, totalling $2.5bn, with a payment date of 27 March 2025.
BHP CEO Mike Henry said: “The demand for BHP products remains strong despite global economic and trade uncertainties, with early signs of recovery in China, resilient economic performance in the US and strong growth in India.
“The trajectory of the world population growing from eight billion today to ten billion in 2050, with more people living in cities, together with the energy transition and the growth of data centres and AI, will compound the need for more metals and minerals.
“Against this backdrop, BHP is well-positioned, with the ability to leverage our strong balance sheet, technical know-how and sustainable business practices to deliver growth and resilient shareholder returns.”
The company is continuing to invest in growth, with a $3.2bn investment in potash and copper, and has completed the $2bn formation of the Vicuña Corp joint venture with Lundin Mining for the development of the combined Filo del Sol and Josemaria copper projects in a prospective region in Argentina.
