BHP hits profit record and sees demand healing in China
BHP Group $BHP Group Ltd(BHP.AU$, the world’s biggest miner, posted its highest ever full-year profit on record commodity prices and will push ahead with growth options on a stronger demand outlook in China.
The Australian company declared a final dividend of $8.9bn, or $1.75 per share, taking total payments for the year to $16.5bn, the highest disbursement in its 137-year history.
BHP said shareholder returns were close to $36bn, including the shares in Woodside Petroleum given to its shareholders in exchange for the sale of the miner’s petroleum division.
The company has seized on a sharp drop in commodity prices to launch a $5.8bn cash offer for Australian rival Oz Minerals $Oz Minerals Ltd(OZL.AU$. The bid was rejected by the Oz Minerals board last week and Henry refused to say whether he would increase the offer.
BHP’s Australia-listed shares rose almost 4% on Tuesday morning following the announcement of the results.
The main driver of improved profits was BHP’s Australian coal business, which delivered underlying earnings before interest and tax of $8.7bn against a loss of $577mn a year as prices soared.
Rising costs and capital expenditure and a shift to mergers and acquisitions will be near-term headwinds for BHP shares. Shares in BHP rose 4.09% to A$40.510 as of Aug 16.
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