BHP -0.33%: Down early before recovering well later in the day after reporting 1H23 NPAT of US$6.6bn, which is below consensus $6.8bn. The dividend was in-line with expectations at US90c. Underlying revenue was solid and inline at US$25.7bnwhich shows costs were higher, although, their cost guidance was mostly unchanged for the full year. The acquisition of OZL for ~US$6.9bn has them within their net debt target range of US$5-15bn, and they remain positive on the demand outlook for the next 6 months and into FY24 on strengthening activity in China on the back of recent policy decisions. There was no material update on OZL with the OZL shareholder Scheme booklet due early March, before a meeting in April and the implementation date late April/early May subject to approvals.
MM likes BHP but retaining an ‘underweight’ position for now
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