BHP's half year profit's misses the mark against estimates

Moomoo Down Under wrote a column · Feb 19 19:08

Mining giant $BHP Group Ltd(BHP.AU)$ has reported its lowest half-year profit in eight years, following significant reductions in the value of its struggling nickel assets in Australia and iron ore assets in Brazil.

Here are moomoo Market Strategist @Jessica Amir findings:

1. While the half yearly profits did miss expectations, it is the third firm in a week citing Chinese construction is turning around.

2. Construction awards have generated momentum for BHP and has helped boost full year revenue for FY24 by 10%.

3. BHP follows China's Mysteel in saying that sales are rising, while Minmetals Futures are seeing activity rising.

BHP's half year profit's misses the mark against estimates

Now, onto the numbers.

Here are BHP's reported numbers vs their estimates:

1. Underlying profit: -0.4% y/y to $6.57 billion, vs estimate $6.73 billion (Bloomberg Consensus). But in line with BHP's estimates amid "strong revenue generation" and cost control

2. Interim dividend: 72c vs. 90.0c y/y, vs estimate 72c

3. Underlying Ebitda: +4.9% y/y to $13.88 billion, vs estimate $14.64 billion

4. Net income: -86% y/y to $927 million, vs estimate $6.61 billion

5. Capital & exploration expenditure: +57% y/y to $4.74 billion

6. Revenue from continuing operations: +5.9% y/y ($1.5 billion) to $27.23 billion (as a result of higher #Ironore and #copper prices)

7. Net debt: $12.65 billion, +83% y/y

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