BHP reports lowest profit in five years

For the fiscal year ending June 30, the company’s underlying profit was USD 10.16 billion, below the market expectation of USD 10.22 billion. In the same period last year, BHP earned USD 13.66 billion.

The main reason for the profit decline was pressure on iron ore prices, BHP’s largest revenue source. Additional supply from Australia, Brazil, and South Africa, along with a slowdown in steel production in China, the world’s largest consumer, put downward pressure on prices, affecting BHP and other major mining companies like Rio Tinto.

The company announced a final dividend of USD 0.60 per share for shareholders, down from USD 0.74 last year, bringing the total annual dividend to USD 1.10, the lowest since 2017.