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BHP NYSE· BHP Group Ltd
Earnings report Q1 2024

BHP Reports 6% Increase in Revenue for the Half Year Ended December 2023

Segments of revenue

BHP's revenue for the half year ended December 2023 increased by 6% to $27.2 billion compared to $25.7 billion in the same period last year. This growth was primarily driven by higher iron ore and copper prices, as well as the contribution of new mines Prominent Hill and Carrapateena. However, the revenue increase was partially offset by the decline in revenue from New South Wales Energy Coal (NSWEC), which experienced a 43% decrease.

Strengths

BHP demonstrated solid operational performance and disciplined cost control during the latest quarter. The company's strong underlying financials were supported by higher iron ore and copper prices, which contributed to the increase in revenue. Additionally, BHP's management highlighted the successful integration of new mines Prominent Hill and Carrapateena, which further boosted the company's revenue.

Challenges

Despite the overall increase in revenue, BHP faced challenges in its New South Wales Energy Coal (NSWEC) segment, which experienced a significant decline in revenue. This weakness can be attributed to various factors, such as lower coal prices and operational challenges in the NSWEC operations.

Noteworthy

It is worth mentioning that BHP's attributable profit decreased by 86% to $0.9 billion compared to $6.5 billion in the same period last year. This decline in profit can be attributed to various factors, including lower profit from operations and higher net finance costs. Additionally, BHP's net debt increased by 83% to $12.6 billion, reflecting the company's increased capital and exploration expenditure.

Summary

BHP reported a 6% increase in revenue for the half year ended December 2023, driven by higher iron ore and copper prices, as well as the contribution of new mines. The company demonstrated solid operational performance and disciplined cost control, which supported its strong underlying financials. However, BHP faced challenges in its NSWEC segment, resulting in a decline in revenue. Despite the revenue growth, BHP's attributable profit decreased significantly, and the company's net debt increased. Overall, BHP's performance in the latest quarter was mixed, with strengths in certain segments and challenges in others.

Source documents

Form 6-K  filed on Feb 20, 2024
2583 pages scanned

Reference data

Company financials Q1 revenue 13.73B
Analyst estimates Q1 EPS missed by NaN%
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