BHP Group (BHP) H2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance, with record production at Western Australia Iron Ore, Spence, and Carrapateena, and 9% copper production growth for the second consecutive year; further 4% copper growth expected in FY25.

• Delivered total dividends of $7.4bn for FY24, with a final dividend of $0.74 per share and a payout ratio of 53–54%.

• Advanced copper and potash project pipelines in Chile, Australia, Argentina, and Canada, with Jansen Stage 1 ahead of schedule and Stage 2 commenced.

• Temporarily suspended Western Australia Nickel operations due to global oversupply and losses, with a $2.7bn impairment.

• Maintained focus on safety, with a 36% reduction in high-potential injuries, though a fatality occurred at BMA.

Financial highlights

• Underlying EBITDA increased 4% to $29.0bn with a 54% margin; underlying attributable profit was $13.7bn, while attributable profit fell to $7.9bn due to $5.8bn in exceptional charges.

• Net operating cash flow rose to $20.7bn, free cash flow more than doubled to $11.9bn, and net debt reduced to $9.1bn.

• Full-year dividend of $1.46 per share, totaling $7.4bn in dividends, with a payout ratio of 53–54%.

• Revenue increased 3% to $55.7bn, driven by higher iron ore and copper prices and volumes.

Outlook and guidance

• Global economic growth expected slightly above 3% for 2024 and 2025, with divergence among major economies.

• Capital and exploration expenditure projected at $10bn in FY25, rising to $11bn per year medium term.

• Copper production guidance for FY25: 1,845–2,045kt; iron ore: 255–265.5Mt; BMA coal: 33–38Mt; potash: Jansen Stage 1 first production expected late CY26.

• Adjusted effective tax rate for FY25 forecast at 33–38%, reflecting Chilean mining tax changes.