BHP Fiscal Year Underlying Earnings Rise by 2% On-Year -- Earnings Review

   By Rhiannon Hoyle 
 

BHP Group Ltd. (BHP.AU) reported its fiscal-year earnings on Tuesday. Here is what you need to know:

UNDERLYING PROFIT FORECAST: The world's No. 1 mining company by market value recorded annual underlying earnings, stripping out one-time charges, of US$9.12 billion, up 2% on the year prior. That was below the US$9.78 billion median forecast of nine analyst forecasts compiled by The Wall Street Journal.

DIVIDEND FORECAST: BHP's annual ordinary dividend totaled US$1.33 a share. That was up from US$1.18 a share for the previous fiscal year but below the median forecast of US$2.42 a share from the same poll.

REVENUE FORECAST: The miner reported full-year revenue of US$45.14 billion. That was flat on the year prior and above the US$45.03 billion forecast by the analysts.

WHAT WE WATCHED:

-- CAPITAL RETURNS: A much-anticipated special dividend didn't materialize, although BHP's final dividend of 78 U.S. cents a share was a record and 25 cents above its 50% minimum payout policy on profits. Total ordinary dividends of US$1.33 per share for the year equated to US$6.7 billion or a 74% payout ratio.

-- COSTS: BHP is forecasting flat to higher costs across its operations for the year ahead, which it says reflects natural field decline in its conventional petroleum unit; lower copper grades, lower by-product credits and higher deferred stripping costs at its big Escondida copper mine; maintenance to improve equipment reliability in its Australian iron-ore business; and increased maintenance and inflation pressure in its Queensland Coal division.

Write to Rhiannon Hoyle at [e-mail]

(END) Dow Jones Newswires

August 19, 2019 19:06 ET (23:06 GMT)

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