BHP shares decline on mixed half-year result
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More news: BHP shares dropped after the mining giant reported lower-than-expected first-half profit and slashed its interim dividend.
BHP shares were down 0.7% to $40.51 at 11:15am AEDT.
RBC Capital Markets analyst Kaan Peker noted that most of BHP's key financial metrics were broadly in line or "a touch better" than consensus estimates.
He noted that the interim dividend was the "key focus" of the result, and it roughly met average forecasts.
BHP cuts dividend after lower-than-expected HY profit
The news: Resources giant BHP has cut its interim dividend after weaker commodities prices dragged down its half-year underlying profit by 23%.
The numbers: Statutory net profit for the six months to December was up four-fold to USD4.4 billion ($6.9 billion). However, underlying profit excluding significant items was down 23% to USD5.1 billion, below the USD5.38 billion consensus estimates. Revenue was down 8% to USD25.2 billion and the company cut its interim dividend to 50 US cents a share, down from 72 US cents a share a year ago.
The context: The result comes on the back of the global miner delivering higher sales volumes in each of its key commodities. However, revenue and profit decreased, primarily as a result of the decline in realised prices for iron ore and steelmaking coal, although this was partially offset by higher copper prices.
“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,” chief executive Mike Henry said.
The source: ASX
