Broken Hill Proprietary (BHP) Company Limited, Australian mining giant has reported an underlying attributable profit of $13.66 billion for the financial year 2024 (FY24), marking a 2% increase from $13.42 billion in FY23.
This growth was driven by favorable commodity prices for key materials.
The company’s revenue rose by 3%, reaching $55.7 billion in FY24, up from $53.81 billion the previous year. BHP attributed this increase to higher realized prices and sales volumes in iron ore and copper, which helped offset the impact of reduced steelmaking coal volumes following the sale of the Blackwater and Daunia mines in Queensland, Australia, as well as declines in energy coal and nickel prices.
The proceeds from the sale of the Blackwater and Daunia mines were used to reduce BHP’s net debt, which fell by 18% to $9.12 billion as of June 30, 2024, compared to the previous year.
The company also announced record production levels at its Western Australia Iron Ore operations, along with a 9% increase in global copper production for the second year in a row.
BHP’s underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 17% increase, primarily driven by higher copper prices, which contributed an additional $900 million, and increased sales volumes due to improved concentrator feed grade, although this was slightly offset by a decline in cathode production.
BHP declared a final dividend of $0.74 per share, bringing the total annual dividend to $1.46 per share for shareholders.
BHP CEO Mike Henry commented: “Across our global copper assets, we grew overall copper volumes by 9% for the second consecutive year and expect to deliver a further 4% in FY25. As a result of this strong performance, combined with our healthy balance sheet, we determined a final dividend of $0.74 per share, a 53% payout ratio, continuing our track record of delivering robust shareholder returns through the cycle. The longer-term fundamentals that drive demand for our products remain compelling. In the near term, we expect volatility in global commodity markets, with China experiencing an uneven recovery among its end-use sectors.”
Earlier in the month, Bloomberg News reported that BHP Group is considering selling its copper and gold mines in Brazil.