(Reuters) -BHP Group reported its smallest annual underlying profit in five years and its lowest dividend in eight years on Tuesday, but said demand for its commodities remained resilient despite an uncertain global economic outlook.
The world’s largest listed miner reported an underlying attributable profit of $10.16 billion for the year ended June 30, down 26% from last year and below the Visible Alpha consensus of $10.22 billion.
This was the miner’s weakest performance since 2020.
Additional supplies from Australia, Brazil and South Africa, alongside lower steel production in top consumer China, pressured iron ore prices for much of the financial year, affecting earnings for top miners including BHP and Rio Tinto.
BHP’s average realised price for its iron ore fell by 19% during the year, though that was partly offset by stronger prices for copper, its second-biggest money-making commodity.
Chief Executive Officer Mike Henry warned that the outlook for the global economy was mixed due to “shifting trade policies”. Still, the “demand for commodities remains strong, particularly in China and India”, he said.
“Policy uncertainty, particularly around tariffs, fiscal policy, monetary easing, and industrial policy, has been elevated and continues to influence investment and trade flows,” the world’s largest listed miner said.
“Despite these dynamics, commodity demand remained resilient.”
The miner announced a final dividend of $0.60 per share, down from $0.74 a year earlier, taking the total annual payout to $1.10 – its weakest dividend since 2017.
(Reporting by Sameer Manekar and Roushni Nair in Bengaluru; Editing by Maju Samuel)
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