BHP share fall after hitting a multi year high following latest set of results
(Kitco News) - BHP (BHP:LSE) shares hit the highest level since July 2011 after following the latest end-of-year results for June 2021. The Australian listing (BHP:ASX) hit its all-time high. The main point from the report was the fact that the company will delist from the London Stock Exchange and keep the Australian listing. Ken MacKenzie, chairman of the world's biggest listed mining company said "BHP will be simpler and more efficient, with greater flexibility to shape our portfolio for the future."
After the results and share hitting the highs the price fell after traders digested the news that the energy arm of the business would be merged with Woodside Petroleum. Woodside would issue new shares to be distributed to BHP shareholders.
In terms of results, the board has announced a record final dividend of $2.00 per share, bringing BHP's returns to shareholders to more than $15 billion for the full year.
Profit from operations of $25.9 billion, up 80%, and Underlying EBITDA of $37.4 billion at a record margin of 64%.
Attributable profit of $11.3 billion (includes an exceptional loss of $5.8 billion predominantly related to the impairments of our potash and energy coal assets, and the current year impact of the Samarco dam failure). Underlying attributable profit of $17.1 billion, up 88% from the prior year.
BHP Chair, Ken MacKenzie said "BHP's performance over the past year illustrates the strength of our portfolio, balance sheet, people and performance culture. Including the record dividend announced today of US$2.00 per share, we have returned over US$15 billion to shareholders over the past year.
He added "BHP is in a strong position to manage its future in a time of rapid change. We have a clear strategy and are executing against it. Jansen Stage 1 will give BHP exposure to a commodity with a strong demand outlook and decades of potential growth. The agreement to pursue a merger of BHP's Petroleum business with Woodside will maximise the value of our oil and gas assets through increased operating scale and synergies, with a more diversified product portfolio to support the energy transition. Now is the right time to unify BHP's corporate structure. BHP will be simpler and more efficient, with greater flexibility to shape our portfolio for the future. Our plans announced today will better enable BHP to pursue opportunities in new and existing markets and create value and returns over generations."
The weekly chart below is currently showing a massive upside rejection. The volume has also been getting weaker but it has to be said we are currently in thin summer markets. The change in structure will have an effect on the price and could mean more volume could come through the Australian listing. The major support on the downside is close to 42.50 but the price is at the volume point of control of the current distribution and this means there is a chance that there could be some short term support. All in all, the trend is still very much an uptrend but supports will be in focus this week.