Posted on 17 Aug 2022
BHP has reported a net profit of $30.9 billion for the fiscal year ended 30 June, up 173% from $11.3 billion a year earlier, underpinned by higher commodity prices, Kallanish notes.
The group achieved a record underlying attributable profit of $23.8 billion, up 39% from the prior year for total operations.
The group's capital and exploration expenditure stood at $6.1 billion for continuing operations. This expenditure is expected to be approximately $7.6 billion and $9 billion respectively for the 2023 and 2024 financial years.
BHP chief executive Mike Henry says the strong results were due to safe and reliable operations, project delivery and capital discipline, which allowed the group to capture the value of strong commodity prices.
According to him, BHP remains the lowest-cost iron ore producer globally and delivered record annual sales from Western Australia Iron Ore.
Henry also says the ramp-up of South Flank is ahead of schedule and the group has revised its medium-term production guidance to more than 300 million tonnes/year.
"In the 2023 financial year, we are assessing expansion alternatives to take us towards 330m t/y of production," he adds.
Meanwhile, he expects China to emerge as a source of stability for commodity demand in the year ahead, with policy support progressively taking hold.
At the same time, he expects to see a slowdown in advanced economies as monetary policy tightens, as well as ongoing geopolitical uncertainty and inflationary pressures.
The direct and indirect impact of Europe’s energy crisis is a particular point of concern, according to him.
"Tight labour markets will remain a challenge for global and local supply chains. Waves of Covid-19 infection continue to occur in the communities where we operate, and we are planning accordingly,” he says.
Source:Kallanish
