BHP reports flat first-half underlying profit, warns of inflation impact

By Thomson Reuters Feb 19, 2024 | 3:39 PM

(Reuters) – BHP Group said its first-half underlying profit was largely unchanged from a year ago on Tuesday citing strong revenue generation, but warned the lagged effect of global inflation will continue into the second-half.

BHP’s strong revenue growth of 6% was underpinned by higher iron ore and copper prices and contributions from new projects, but was partially offset by lower energy coal realised prices.

“We expect the lagged impact of global inflation to continue into the second-half, particularly in relation to labour, and as we negotiate long-term supply arrangements,” the miner said.

The world’s biggest listed miner said underlying profit attributable to shareholders was $6.57 billion for the six months ended Dec. 31, unchanged from the previous year, but beat an LSEG estimate of $6.42 billion.

It declared an interim dividend of $0.72 per share, compared with $0.90 per share declared a year earlier.

(Reporting by Sameer Manekar and Himanshi Akhand in Bengaluru; Editing by Chris Reese)