BHP Group Limited (ASX:BHP) Announces Half-Year Financial Results and Interim Dividend
Financial Performance
BHP reported a revenue decrease of 8% to US$25.176 billion for the half-year ended 31 December 2024. Profit after taxation attributable to members surged by 376% to US$4.416 billion. Net tangible asset backing per fully paid share increased to US$9.43 from US$8.68.
Operational Achievements
The company’s operations demonstrated resilience with standout production performances from Escondida, WAIO, and BMA. WAIO maintained its position as the lowest-cost iron ore producer globally, reflecting BHP’s commitment to productivity.
Growth Investments and Joint Ventures
BHP invested US$3.2 billion in potash and copper and completed the formation of Vicuña Corp, a US$2.0 billion joint venture with Lundin Mining to develop copper projects in Argentina.
Dividend Declaration
The Board declared an interim dividend of 50 US cents per share, fully franked, with a total payout of US$2.5 billion. The record date is 7 March 2025, and payments will commence on 27 March 2025.
Executive Comments
CEO Mike Henry stated, “BHP reported a strong financial performance for the half-year, underpinned by safe and reliable operations and rigorous cost control. The Group’s industry-leading margins and robust cash flow enabled the Board to determine an interim dividend of 50 US cents per share – a total of US$2.5 billion. The strength of the result demonstrates BHP’s operational resilience and its ability to perform through the cycle, with standout production performances in the half from Escondida, WAIO and BMA. WAIO has maintained its lead as the lowest-cost iron ore producer globally, a testament to our ongoing work to drive productivity at our operations.
We continued to invest in growth, including US$3.2 billion in potash and copper, and have now also successfully completed the US$2.0 billion formation of Vicuña Corp, a 50/50 joint venture with Lundin Mining to develop the combined Filo del Sol and Josemaria copper projects in an exciting prospective region in Argentina.
In Brazil, the signing of a comprehensive settlement agreement during the half will deliver expanded programs for the environment and communities, while also providing greater clarity on future cash flows related to the tragedy.
The demand for BHP products remains strong despite global economic and trade uncertainties, with early signs of recovery in China, resilient economic performance in the US and strong growth in India. The trajectory of the world population growing from eight billion today to 10 billion in 2050, with more people living in cities, together with the energy transition and the growth of data centres and AI, will compound the need for more metals and minerals. Against this backdrop, BHP is well-positioned, with the ability to leverage our strong balance sheet, technical know-how and sustainable business practices to deliver growth and resilient shareholder returns.
Ross McEwan will succeed Ken MacKenzie as Chair on 31 March 2025. We thank Ken for the instrumental role he has played in shaping BHP and look forward to Ross’ leadership as Chair of BHP.”
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 recommended BHP Group. 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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