By Rhiannon Hoyle Mining giant BHP said its annual profit fell by more than half compared with a year earlier, reflecting a pullback in commodity prices that...
Mining giant BHP said its annual profit fell by more than half compared with a year earlier, reflecting a pullback in commodity prices that has squeezed profits across the industry as China's economy stumbles and big markets like the U.S. grapple with sharply higher interest rates.
The miner cut its final dividend to 80 U.S. cents a share, less than half the $1.75 paid a year ago. Shares in BHP were down by 1.5% around midday in Sydney. BHP said its underlying profit, a closely watched measure that strips out some one-time items, totaled $13.42 billion, down from $23.82 billion in the previous fiscal year.
The average price for its metallurgical coal, also used to make steel, was down by 22% after surging in 2022 in big part due to supply concerns when Russia's invasion of Ukraine disrupted trade flows. A drawn-out real estate crunch in China is especially worrying for miners, given the importance of the sector to the country's economy and metals demand.
"The authorities have acknowledged that more policy support is needed to fully embed the recovery," BHP said."For FY 2024, the key question is how effective this latest policy push will be."
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