(Reuters) – BHP sees signs of economic recovery in China and central bank rate cuts reviving demand for steel and copper but flagged risks to global growth from potential trade tensions, as it logged its lowest first-half profit in six years.
The world’s largest listed miner on Tuesday reported an underlying attributable profit of $5.08 billion for the six months ending December 2024, down 23% from a year earlier but slightly ahead of the Visible Alpha consensus estimate of $5.01 billion.
The world’s biggest listed miner sounded a cautiously optimistic note about demand prospects for its two main products, steel ingredient iron ore, and copper, which has grown to account for nearly half of its profits.
“Central banks’ ongoing rate cuts are expected to translate into a recovery for steel and copper demand across the OECD (Organisation for Economic Co-operation and Development) in the near term,” the miner said.
“However, potential trade tensions present a risk to the recovery in developed economies and across the globe.”
Demand for BHP products remained strong despite global economic and trade uncertainties, with early signs of recovery in China, resilient economic performance in the U.S. and strong growth in India, Chief Executive Officer Mike Henry said.
Underlying operating earnings for its copper operations jumped 44% to $5 billion as tight fundamentals, Chinese stimulus plans and interest rate cuts in the United States kept copper prices elevated.
In contrast, iron ore earnings declined 26% to $7.2 billion as the average realised price fell to $81.11 per wet metric ton from $103.7 a year ago.
BHP declared an interim dividend of 50 cents per share, in line with the consensus estimate of 50 cents apiece but below 72 cents per share declared last year.
(Reporting by Sameer Manekar Rishav Chatterjee in Bengaluru, Melanie Burton in Melbourne; Editing by Lisa Shumaker and Sonali Paul)
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