BHP reports US$8.93b profit, record dividend
MELBOURNE: Global miner BHP posted a 33 per cent jump in annual underlying profit and a record final dividend yesterday, but flagged a delay in future savings as well as cost pressures at some of its operations.
The world’s biggest miner, which has been focusing on simplifying its business and driving returns to shareholders, said it expected its strong momentum to continue into the medium term.
However, BHP chief executive Andrew Mackenzie said the miner was “a little more apprehensive” on the short-term outlook, given trade ructions between China and the United States, and analysts flagged concerns over rising costs.
For the year ended June 30, underlying profit, which excludes one-time gains and losses, rose to US$8.93 billion (RM35 billion) from US$6.73 billion, just below an estimate of US$9.27 billion according to analysts.
BHP paid a record final dividend of US$0.63 a share, up from US$0.43 a year ago, on the back of free cashflow of US$12.5 billion from a strong operating performance and higher commodity prices.
“A pretty solid result really. I think largely in line with what the market expected,” said portfolio manager Andy Forster of Argo Investments in Melbourne.
“The cash flow was strong, the dividend probably a bit stronger than what we expected.”
However, a cut in productivity gains expected in fiscal 2019 to US$1 billion from a promised US$2 billion took the gloss off the results, he added, although the miner pledged to make the additional savings in 2020.