19th Aug 2025 01:26
(Alliance News) - BHP Group Ltd on Tuesday reported strong profit growth in financial year 2025, supported by record production, but cut its final dividend as revenue declined.
The Melbourne, Australia-based diversified miner said attributable profit increased 14% to USD9.02 billion in the year ended June 30 from USD7.90 billion a year earlier. Basic earnings per share rose to 177.8 US cents from 155.8c.
However, underlying attributable profit dropped 26% to USD10.16 billion from USD13.66 billion.
Revenue declined 7.9% to USD51.26 billion from USD55.66 billion.
BHP cut its final dividend by 18% to USD0.60 from USD0.74, lowering the total dividend for the year by 25% to USD1.10 from USD1.46.
Chief Executive Officer Mike Henry said: "FY25 was another strong year for BHP, marked by record production, continued sector-leading margins and disciplined capital allocation. Safety remains our highest priority, and we achieved year-on-year improvements across key metrics. Against a backdrop of global uncertainty this strong performance has led to robust financial outcomes and reflects the resilience of BHP’s business and strategy.
"Chinese copper demand outperformed in FY25, while iron ore demand was resilient, driven by strong infrastructure investment and manufacturing activity in China. Steelmaking coal prices have softened due to oversupply, though policy shifts in China and new blast furnace capacity in Asia are expected to support the market. Potash markets are expected to continue to benefit from a growing and wealthier population and the need for more sustainable agriculture."
Copper production grew 8.2% to 2.0 million tonnes; iron ore production rose 1.2% to 263 million tonnes; steelmaking coal production fell 19% to 18.0 million tonnes; energy coal declined 2.6% to 15.0 million tonnes.
Capital and exploration expenditure rose 5.6% to USD9.79 billion from USD9.27 billion, while net debt jumped 42% to USD12.92 billion from USD9.12 billion.
Looking ahead, CEO Henry said global growth, urbanisation, and the energy transition, gives BHP confidence in the long-term fundamentals of steelmaking materials, copper and fertilisers.
In financial year 2026, copper production is estimated to be between 1.8 and 2.0 million tonnes; iron ore between 258 and 269 million tonnes; steelmaking coal between 18 and 20 million tonnes; energy coal between 14 and 16 million tonnes.
BHP will continue to invest in growth and expects to spend USD11 billion in capital and exploration annually over the next two years, before reducing spending in these areas to an average of USD10 billion in each financial year between 2028 and 2030.
BHP shares were up 0.1% at AUD41.51 in Sydney on Tuesday morning.
By Elijah Dale, Alliance News senior reporter Asia-Pacific
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