BHP Sees Profit Decline Due to Decreased Iron Ore Prices
BHP Profit Decline: BHP reported a 26% drop in underlying attributable profit to $10.16 billion for FY25, marking its lowest full-year profit since 2020, primarily due to a 19% decrease in iron ore prices.
Revenue and Earnings Impact: Revenue fell 8% year-on-year to $51.3 billion, with underlying earnings before interest, taxation, depreciation, and amortisation decreasing by 10%.
Copper Production Growth: Copper production exceeded 2 million tonnes for the first time, contributing nearly half of the group's earnings, driven by increased output from the Escondida mine in Chile.
Dividend and Future Outlook: The final dividend was reduced to $0.60 per share, while BHP maintained its capital expenditure guidance at $11 billion for FY26 and FY27, expressing confidence in long-term demand for commodities despite a mixed global economic outlook.
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