South32 Limited (ASX:S32) Announces H1 Financial Results
Financial Performance
South32 Limited (ASX:S32) reported a 25% increase in revenue, reaching US$3,123 million for the half year ended 31 December 2024. Profit after tax attributable to members surged by 579% to US$360 million. Underlying EBITDA also saw a significant rise of 44%, totaling US$1 billion in H1 FY25.
Operational Achievements
The company successfully streamlined its portfolio by selling Illawarra Metallurgical Coal, which has reduced sustaining capital intensity and strengthened the balance sheet. This strategic move enables South32 to self-fund growth in zinc and copper sectors. Additionally, aluminium production increased by 5%, and copper production rose by 16%, capitalizing on improved commodity prices.
Safety and Environmental Updates
South32 continued to implement its Safety Improvement Program, including the LEAD Safely Every Day initiative, which has led to a 31% improvement in total recordable injury frequency. The company remains committed to halving its operational greenhouse gas emissions by 2035 and is progressing its Climate Change Action Plan.
Executive Comments
Chief Executive Officer Graham Kerr commented, “We delivered a strong start to FY25, off the back of our improved operating performance and transformed portfolio. We are focused on continuing our strong operating performance into the second half, unlocking value from our growth pipeline and continuing to reward shareholders as our financial performance improves.”
Dividends and Shareholder Returns
The Board declared an interim dividend of US$3.4 cents per share (US$154 million), fully franked, for the half year ended 31 December 2024. This dividend represents 41% of underlying earnings and aligns with South32’s commitment to returning excess capital to shareholders.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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