Why did BHP Shares fall despite $US13b profit
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.
