BHP -.0.71%: A softer session for BHP following their FY23 results out this morning, with earnings coming in around 3% below consensus, while forward-looking capex was higher as cost pressures continue to work against the miners at a time when their biggest customer is wobbling. Underlying profit $US13.42 billion was down 44% versus the bumper result last year (and consensus of $13.93 billion). Lower realised pricing and higher costs, which were up about 10% in FY23, played out across their suit of main commodities with earnings from iron ore -23%, even as production increased 1%, Coal profits were down 47%, copper was 22% lower, and nickel was 61% lower than FY22. The final dividend per share of US80c was down from $US1.75 last year – they’ll be glad they scrapped their progressive dividend policy!
- Softer earnings on lower revenue and higher costs are the key takeaways here, what comes next with China is clearly important for the big Australian in the near term.
MM remains bullish BHP, although we are below market weight.
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