Mining News
BHP delivers strong half year results, announces record dividend
(Kitco News) - BHP, the world’s leading resource company, today announced strong operational and financial performance for the half year ended 31 December 2020, with record production achieved at Western Australia Iron Ore (WAIO) and record average concentrator throughput delivered at Escondida.
The company’s profit from operations was US$9.8 billion, up 17%. Underlying EBITDA was US$14.7 billion at a margin of 59%, with full year unit cost guidance unchanged for the company’s major assets.
BHP said that net operating cash flow of US$9.4 billion and free cash flow of US$5.2 billion reflect higher iron ore and copper prices and strong operational performance.
The company’s Board has determined to pay an interim dividend of US$1.01 per share (or US$5.1 billion), equivalent to an 85% payout ratio on an underlying basis.
CEO Mike Henry commented, “BHP has delivered a strong set of results. Our continued delivery of reliable operational performance during the half supported record production at Western Australia Iron Ore and record concentrator throughput at Escondida. Our operations generated robust cash flows, return on capital employed increased to 24 per cent and our balance sheet remains strong with net debt at the bottom of our target range. The Board has announced a record half year dividend of US$1.01 per share, bringing BHP’s shareholder returns to more than US$30 billion over the past three years.”
BHP is a world-leading resources company. The company extracts minerals, oil and gas. BHP’s global headquarters are in Melbourne, Australia. The company operates under a Dual Listed Company structure with two parent companies (BHP Group Limited and BHP Group Plc) operated as if it was a single economic entity.
