BHP Group (ASX:BHP) has reported a 376% increase in net profit for the half year ended 31 December 2024, reaching US$4.4bn, despite an 8% drop in revenue to US$25.2bn. The results, released on 18 February 2025, highlight strong copper production growth and cost discipline offsetting weaker iron ore and coal prices.
Key financial results
- Net profit: US$4.4bn, up from US$0.9bn in the previous corresponding period.
- Revenue: Down 8% to US$25.2bn.
- Underlying EBITDA: US$12.4bn, down 11%.
- Interim dividend: US$0.50 per share, fully franked.
- Net debt: Increased to US$11.8bn.
Copper drives performance
Copper production rose 10% in the half, driven by a 22% increase at Escondida, BHP’s largest copper mine in Chile. This helped boost copper’s share of underlying EBITDA to 39%, up from 25% a year earlier.
The company also completed the US$2bn formation of Vicuña Corp, a 50/50 joint venture with Lundin Mining, which will develop the Filo del Sol and Josemaria copper projects in Argentina.
Iron ore and coal prices weigh on revenue
While BHP maintained strong production from its Western Australia Iron Ore (WAIO) operations, iron ore prices fell, impacting overall revenue. Steelmaking coal also saw lower realised prices, though these were partially offset by higher copper prices.
Cost control and investment in growth
BHP lowered unit costs across major assets, including a 12% reduction at Escondida, and WAIO maintained its position as the lowest-cost major iron ore producer globally.
The company increased capital and exploration expenditure by 10% to US$5.2bn, with US$3.2bn directed towards copper and potash investments. BHP expects around 65% of its medium-term capital spending to focus on these commodities.
Outlook and market conditions
BHP remains optimistic about long-term demand for commodities, particularly from China, India, and the global energy transition. CEO Mike Henry said, “The demand for BHP products remains strong despite global economic and trade uncertainties.”
However, the company noted that the economic outlook remains mixed, with inflationary pressures and labour costs still affecting operations.
Leadership transition
BHP announced that Ken MacKenzie will step down as Chair on 31 March 2025 and will be succeeded by Ross McEwan, the current CEO of National Australia Bank.
Dividend and shareholder returns
The board declared an interim dividend of US$0.50 per share, down from US$0.72 per share last year, reflecting lower revenue. The dividend will be paid on 27 March 2025.
