BHP profit tops estimates as copper powers growth, to pay highest dividend in 4 years
Copper has overtaken iron ore as the company’s top earnings driver
BHP Group reported stronger-than-anticipated annual earnings and announced its largest dividend payment in four years, driven by soaring copper prices. CEO Brandon Craig highlighted the company's extensive pipeline of projects, which could increase copper production by up to 40% by 2035. Despite short-term declines in production, BHP saw a 30% increase in full-year underlying attributable profit to US$13.2 billion, surpassing the estimated US$12.66 billion.
The company declared a final dividend of 99 cents per share, raising the annual payout to US$1.72, the highest in four years. Shares surged up to 4.2% after the announcement, reaching a two-month peak of A$64.79. Copper prices have surged to record highs above US$14,000 per metric ton, fueled by the rapid expansion of AI data centres and the global shift towards cleaner energy sources.
Craig emphasized BHP's long-term growth strategy, noting that while investment decisions and capital spending remain undecided, the company anticipates a more than US$1 billion increase in spending next year. Copper, including byproducts like gold and uranium, contributed US$18.19 billion in operating earnings for the year, surpassing iron ore's US$14.53 billion in contribution.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 3 other outlets
- BHP profit tops estimates as copper powers growth, to pay highest dividend in 4 years straitstimes.com
- Copper powers profit rise at mining giant BHP freemalaysiatoday.com
- Copper is new king for Australia's BHP as profit jumps 30% asia.nikkei.com
