BHP(BHP) - 2025 Q2 - Quarterly Report

Financial Performance - Attributable profit for the half year ended December 31, 2024, was US$4.4 billion, a 376$0.9 billion[15] - Revenue decreased by 8% to US$25.2 billion from US$27.2 billion in HY24, primarily due to lower realized iron ore and steelmaking coal prices[22] - Underlying EBITDA was US$12.4 billion, down 11$13.9 billion in HY24, with an underlying EBITDA margin of 51.1%[22][25] - Free cash flow decreased by 30% to US$2.6 billion from US$3.8 billion in HY24[29] - Net operating cash flow was US$8.3 billion, a 6$8.9 billion in HY24[29] - Profit from operations increased by 90% to US$9,126 million from US$4,803 million in HY24[149] - Basic earnings per share rose to 87.1 cents, a 376% increase from 18.3 cents in HY24[149] - Underlying attributable profit decreased by 23% to US$5,082 million from US$6,569 million in HY24[149] - Total comprehensive income for the half year was US$5,258 million, compared to US$1,676 million in the prior year, highlighting overall financial health[183] Capital Expenditure and Investments - Capital and exploration expenditure was US$5.2 billion, a 10$4.7 billion in HY24, with significant investment in potash and copper[17][29] - The company announced a fully franked interim dividend of US$0.50 per share, totaling US$2.5 billion, with a payout ratio of 50%[20] - BHP approved a US$4.9 billion investment for Jansen Stage 2, aiming for a total potash production capacity of approximately 8.5 Mtpa[131] - Jansen Stage 1 is 63$1.4 billion for FY25[137] - The Prominent Hill Operation Expansion (PHOX) project is forecasted to come online in H2 FY27 with a total investment of US$912 million[82] Debt and Cash Management - Interest-bearing liabilities decreased to US$20.2 billion from US$22.4 billion in HY24, while net debt increased to US$11.8 billion[30][31] - The Group's net debt balance is expected to increase to around the top end of the net debt target range following the completion of the Vicuña transaction and payment of the H2 Samarco settlement obligations[32] - Net debt decreased by 7% to US$11,793 million from US$12,648 million in HY24[149] - Cash and cash equivalents stood at US$9,560 million, down from US$12,501 million at the end of June 2024, indicating a tighter liquidity position[185] Production and Operational Highlights - Total copper proportion of Group Underlying EBITDA increased to 39% from 25% in HY24, driven by a 10% increase in copper volumes and higher prices[16][25] - Copper production for FY25 is estimated to be between 1,845 kt and 2,045 kt, with an average realised price of US$3.99/lb, a 9$206.37/t, a 23% decrease[104] Market and Economic Conditions - The global economy grew at 3.2% in CY24, with a projected growth outlook of around 3% for CY25 and CY26, influenced by trade and inflation uncertainties[39] - Inflationary pressures have eased, with headline consumer inflation in Australia falling from a 7.8% peak in FY23 to within the Reserve Bank of Australia's 2-3% target range[45] Environmental and Safety Performance - Health and safety indicators showed zero work-related fatalities in HY25, with a high-potential injury frequency of 0.06, improved from 0.09 in HY24[173] Exceptional Items and Challenges - The company reported exceptional items totaling a net loss of US$666 million, primarily due to the Samarco dam failure and the temporary suspension of Western Australia Nickel operations[198]