BHP Group Ltd’s share price was volatile in early trading as investors reacted to the company’s lowest dividend payout since 2017, a positive copper outlook and CEO Mike Henry’s comments on potential trade policy impacts under Donald Trump.
Shares fluctuated between A$40.40 and A$41.15 before settling 0.3% lower at A$40.70 by 10:20 am AEDT. At midday, the company was 0.66% higher to $41.07.
The mining giant reported first-half revenue of US$25.2 billion, marking an 8% decline from the prior corresponding period, primarily due to weaker realised prices for iron ore and steelmaking coal.
Attributable profit rose to US$4.4 billion but underlying attributable profit fell 23% to US$5.1 billion after adjusting for HY24 exceptional losses. Some analysts had expected underlying profit to reach US$5.39 billion, according to Bloomberg.
"The troubles for Australia’s largest miner continued today, as BHP’s first-half-year profits missed estimates while also cutting its interim dividend to $0.50 a share," eToro market analyst Josh Gilbert said.
"These results today are the tell-tale sign of waning Chinese demand for BHP’s key commodities like iron ore and copper, with prices remaining in reverse in the last six months of 2024.
