BHP offers lowest dividend in 8 years as miner | Australian Markets

Australia’s largest miner can pay shareholders their lowest interim dividend in eight years.

Inflationary pressures have been a central theme in BHP’s half-year outcomes, posted on Tuesday.

BHP recorded a $US5.1bn ($A8bn) underlying revenue for the primary half of this financial yr – down 23 per cent.

Weak iron ore costs and steelmaking coal costs damage the multi-continental miner, however “productivity initiatives and cost discipline” – plus beneficial international exchange modifications – allowed the company to mitigate the worldwide 3.7 per cent inflation price.

Across the world, growth in companies outpaced industrials in 2024, resulting in slowing commodity calls for in lots of economies, it says in BHP’s outcomes.

“The impact of policy on trade and inflation remains a key uncertainty, particularly for the United States and its trade partners,” BHP says.

“Developed economies are expected to gradually recover, as interest rates continue to be lowered, with the US economy likely to outperform other developed markets.”

BHP expects India to stay the fastest-growing main financial system, and after China met its financial growth targets, Beijing will use coverage to help the financial system and improve home demand within the close to future.

“Inflation has eased across our major operating regions, but we still expect lingering labour market tightness to impact the mining sector’s cost base in the remainder of FY25,” BHP says.

As a end result, BHP is offering a $US0.50 per-share dividend, its lowest interim payout since 2017.

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