BHP posts smallest annual profit in five years on lower iron ore prices
The world's largest listed miner reported an underlying attributable profit of US$10.16 billion for the year ended June 30, down 26 per cent from last year and below the Visible Alpha consensus of US$10.22 billion.
This was the miner's weakest performance since 2020.
Additional supplies from Australia, Brazil and South Africa, alongside lower steel production in top consumer China, pressured iron ore prices for much of the financial year, affecting earnings for top miners including BHP and Rio Tinto.
BHP's average realised price for its iron ore fell by 19 per cent during the year, though that was partly offset by stronger prices for copper, its second-biggest money-making commodity.
Chief executive officer Mike Henry warned that the outlook for the global economy was mixed due to 'shifting trade policies'. Still, the 'demand for commodities remains strong, particularly in China and India', he said.
'Policy uncertainty, particularly around tariffs, fiscal policy, monetary easing, and industrial policy, has been elevated and continues to influence investment and trade flows,' the world's largest listed miner said.
'Despite these dynamics, commodity demand remained resilient.'
The miner announced a final dividend of US$0.60 per share, down from US$0.74 a year earlier, taking the total annual payout to US$1.10 - its weakest dividend since 2017. REUTERS
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