BHP (ASX:BHP) profit surges on higher commodity prices

Company News

by Lauren Evans

BHP (ASX:BHP) is set to pay a record US$1.50 interim dividend after posting a US$9.44 billion half-year profit underpinned by a surge in the price of key commodities.

The miner's after-tax profit soared 144 per cent from the first half of the previous financial year from US$3.88 billion amid stronger pricing in iron ore, coal, oil and copper.

Its underlying earnings before interest, taxes, depreciation and amortisation from continuing operations rose 33 per cent at a margin of 64 per cent, driven higher realised prices, disciplined cost performance and near-record production at Western Australia Iron Ore. Profit from continuing operations rose 50 per cent to US $14.8 billion.

Production guidance is unchanged for iron ore, copper, energy coal and nickel, while met coal lowered on weather and labour constraints.

“BHP had a strong first half. We achieved our third consecutive fatality free calendar year. We mitigated the impacts of Covid-19 and significant adverse weather events to turn in a solid operational performance, particularly from our flagship Western Australian Iron Ore business,” chief executive officer Mike Henry.

Shares in BHP (ASX:BHP) are trading 0.2 per cent higher at $48.41. 

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