BHP first-half profits hit by inflation, lower prices

Australian miner BHP reported a decline in first-half profits and revenues on Tuesday as inflation and lower prices took their toll, but struck a brighter note on its outlook.

In the half year to 31 December 2022, pre-tax profit dropped 30% to $10.2bn, with revenues down 16% to $25.7bn. The miner pointed to lower realised prices for iron ore and copper and inflationary impacts across the group.

BHP cut its interim dividend per share to 90 cents from $1.50 a year earlier.

Chief executive officer Mike Henry said: "We are positive about the demand outlook in the second half of FY23 and into FY24, with strengthening activity in China on the back of recent policy decisions the major driver.

"We expect domestic demand in China and India to provide stabilising counterweights to the ongoing slowdown in global trade and in the economies of the US, Japan and Europe. The long-term outlook for our commodities remains strong given population growth, rising living standards and the metals intensity of the energy transition, including for steel making raw materials."