Global mining giant BHP has capped off a strong fiscal year on Tuesday, buoyed by a sharp uptick in global copper prices and strong production performance across key segments to post robust full-year financial results that deliver shareholders the company’s highest dividend payout in four years.
The company reported a net annual profit of $9.8 billion USD, representing a 9% rise compared to the previous fiscal year. Along with this profit growth, total annual dividends jumped 57% year-over-year to reach $8.7 billion USD, equal to $12.24 billion AUD. Dividends per share total $1.72 USD for the full year, with a final payout of $0.99 USD per share scheduled to reach shareholders next month.
In addition to expanding returns for investors, BHP also increased its capital expenditure and exploration budget by 5% to $10.3 billion USD for the coming fiscal cycle, enabling further investment in high-growth segments.
Newly installed chief executive Brandon Craig highlighted that copper has become the core growth engine for the global mining firm, marking the first time the commodity has contributed more than half of the company’s underlying earnings before interest, taxes, depreciation, and amortization (EBITDA). “Copper is the engine that is driving BHP’s growth. For the first time, Copper contributed more than half our underlying EBITDA and generated significant free cash flow, which means our copper growth is self-funding,” Craig said in a statement accompanying the earnings release.
Alongside the copper boom, the firm also delivered strong performance across other core asset portfolios, logging record iron ore production and shipment volumes at its Western Australia Iron Ore (WAIO) operation, maintained annual copper output of roughly 2 million tonnes for the second consecutive year, and posted an improved operating result in its coal segment. Craig added that the company met or exceeded performance guidance across most of its business lines and holds industry-leading cost positions across its operations.
Looking ahead, BHP executives point to growing global demand for key mined commodities as a long-term tailwind for growth. The firm projects that global copper demand alone will surge from the current 34 million tonnes per annum to more than 50 million tonnes annually by 2050, driven by industrial and infrastructure investment across major global economies.
“We expect China to continue producing around 1 billion tonnes of steel annually through this decade while it also invests heavily in its power grid, the United States is investing in copper-intensive technology, and India is importing more of the raw materials it needs as the fastest growing major economy,” Craig explained, outlining the divergent demand drivers across key markets.
Market analysts note that BHP’s strong results stand out amid a recent stretch of underwhelming earnings releases from other large global firms. Tony Sycamore, an analyst with online trading platform IG, highlighted that the company achieved a 35% rise in realized copper prices while cutting unit production costs by 6% even amid broad global inflationary pressures.
“After a tough run of earnings misses over the past week or so, BHP has stepped up and delivered a solid, if not perfect, set of numbers that should steady the ship,” Sycamore said. “Tight cost control, copper now contributing more than half of group earnings, and total shareholder returns hitting a four-year high are the standout features – and should be enough to see the Big Australian retest its mid-June record high of $65.98 in the sessions ahead.”
Early trading on the Australian Securities Exchange (ASX) reflected positive investor sentiment, with BHP shares trading up 3.6% to $64.45 AUD shortly after the market open on Tuesday.