BHP's FY Profit Hits 5-Year Low Due to Iron Ore Decline, Yet Dividend Increase Lifts Shares

Annual Profit Decline: BHP reported a 26% drop in annual profit to $10.16 billion, the lowest in five years, primarily due to reduced iron ore prices stemming from sluggish demand in China.

Dividend Announcement: The company declared a final dividend of $0.60 per share, slightly lower than the previous year's $0.74, but higher than analysts' expectations, resulting in a 1% increase in its shares.

Debt and Acquisition Plans: BHP raised its net debt target range to between $10 billion and $20 billion and expressed interest in acquiring reasonably-priced, high-quality assets in copper and potash.

Future Spending and Challenges: The miner plans to invest $11 billion in growth projects over the next two years, despite facing challenges such as cost overruns and project delays, while maintaining a resilient outlook for commodity demand amid global economic uncertainties.