BHP offers small lift in dividend as profit falls 8 per cent
The world's biggest miner BHP has reported an 8 per cent fall in its underlying profit to $US4.03 billion ($5.66 billion) for the December half, but pledged to reward shareholders with an interim dividend the same size as last year's.
The underlying profit came in below analyst expectations, but the 55 US cent per share dividend is two cents higher than consensus expectations.
BHP chief executive Andrew Mackenzie said the company had maintained a focus during the year on portfolio simplification, cash generation and capital discipline and that this had "delivered higher cash returns to shareholders".
According to finance advisory firm Vuma, consensus analysts were expecting BHP to report a half year attributable profit from continuing operations of $US4.21 billion, total revenue of $US20.69 billion and total underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $US10.63 billion.
Analysts had predicted an interim dividend of US53 cents per share.
Total revenue, at $US20.74 billion from continuing operations, was above expectations. The 55 US cents fully franked interim dividend will be paid on 26 March.
BHP released its results for the December half after the Australian market closed on Tuesday, but before the London market opened for the day.
In recent weeks the price of BHP's biggest revenue generator, iron ore, has surged on global markets in response to the tailings dam disaster at a Vale mine in Brazil which is believed to have killed hundreds of people.
In the aftermath of the disaster, a crackdown by Brazilian regulators is expected to reduce Vale's iron ore production.
The dam disaster occurred after the December half had finished, so the higher iron ore prices were not reflected in BHP's half year profit.
But the higher prices, if maintained, will significantly swell the revenue of BHP and fellow Australian iron ore producers Rio Tinto and Fortescue Metals Group in the June half now underway.