12th Feb 2026 01:11
(Alliance News) - South32 Ltd on Wednesday hiked its dividend and increased its share buyback programme as profit for the first half of financial year 2026 improved despite revenue falling.
The Perth, Australia-based mining company said profit attributable to equity holders jumped 29% to USD464 million in the six months ended December 31 from USD360 million in the same period a year prior.
Diluted earnings per share rose 29% to 10.3 US cents from 8.0 cents, while DEPS from continuing operations grew 22% to 9.6 cents from 7.9 cents.
South32 lifted its interim dividend by 15% to 3.9 cents per share from 3.4 cents, and announced a USD100 million increase to its existing on-market share buyback programme, with USD209 million remaining to be returned to shareholders by February 26, 2027.
Total revenue from continuing operations declined 2.6% to USD2.81 billion from USD2.88 billion, with group production revenue down 2.0% at USD2.63 billion and third party products and services 11% lower at USD181 million.
Expenses excluding finance costs fell 3.4% to USD2.45 billion from USD2.54 billion, and the company said its income tax expense declined 45% to USD108 million from USD198 million.
Total equity attributable to shareholders improved by 4.5% to USD9.24 billion at the end of the half year period from USD8.85 billion at the end of financial year 2025.
Chief Executive Officer Graham Kerr said: "Our consistent operating performance and higher base and precious metals prices underpinned strong financial results for the half.
"We're continuing work to grow our base metals production and unlock value across multiple development horizons.
"At Cannington, we have today announced a 28 per cent increase in the underground ore reserve, while also targeting further potential growth through both underground and open pit development options."
With its results, the company said no changes have been made to its financial year 2026 production outlook for operated assets.
However, production guidance for non-operated Brazil Aluminium has been revised down to 135,000 tonnes from 160,000 tonnes for financial 2026 and to 140,000 tonnes from 165,000 tonnes for financial 2027, as the smelter's operator implements measures to improve stability and continues to ramp-up all three potlines.
South32 shares were 4.4% higher at AUD4.79 in Sydney on Thursday morning, while shares in London closed up 2.5% on Wednesday and shares in Johannesburg ended 3.6% higher.
By Elijah Dale, Alliance News senior reporter Asia-Pacific
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