| Release Time | IMMEDIATE |
| Date | 21 February 2023 |
| Number | 2/23 |
BHP RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 2022
Note: All results presented in the News Release are on a continuing operations basis, except as noted.
Safety and sustainability: Unwavering focus on making our operations safe, sustainable and inclusive
– A colleague tragically lost his life in a rail incident at our Port Hedland operation in February 2023. We remain resolute in our commitment to making BHP safe.
– Females now represent 33.6% of our workforce, a near doubling since we announced our aspirational goal for gender balance in 2016.
– We continue to make good progress against our Social Value Framework, creating value for our people, partners, the economy, the environment and local communities.
Operational excellence: Reliable operational performance and disciplined cost control
– Strong supply chain performance at Western Australia Iron Ore (WAIO) underpinned record half year production and our continued leading C1 unit cost position of US$15.50 per tonne.
– Profit from operations of US$10.8 billion, down 27%, driven by a US$4.8 billion reduction in revenue which largely reflects lower iron ore and copper prices. Underlying EBITDAi of US$13.2 billion at a margini of 54%.
– Attributable profit from total operations of US$6.5 billion and Underlying attributable profiti of US$6.6 billion, each down 32% from the prior period.
– Net operating cash flow of US$6.8 billion and free cash flowi of US$3.5 billion.
– We paid US$7.5 billion in tax and royalty payments to governments in the December 2022 half year.
Disciplined capital allocation: Strong balance sheet enables our strategy
– Capital and exploration expenditurei of US$3.0 billion. Guidance for the full year of US$7.6 billion remains unchanged.
– The Jansen Stage 1 project is tracking to plan, with targeted first production brought forward to 2026, from 2027. We have commenced a feasibility study for Jansen Stage 2, which we expect to be completed during the 2024 financial year.
– We continued to expand our opportunities in future facing commodities through additional drilling at Oak Dam, adding to our portfolio of early-stage entry investments, and the launch of BHP Xplor.
– In December 2022, we entered into a Scheme Implementation Deed with OZ Minerals Ltd (OZL) to acquire 100% of OZL by way of a scheme arrangement for a cash price of A$28.25 per OZL share, which corresponds to an enterprise value of A$9.8 billionii.
– Our commitment to a strong balance sheet through the commodity price cycle remains, with net debti at 31 December 2022 of US$6.9 billion, towards the bottom of our target range of between US$5 and US$15 billion.
Value and returns: Interim dividend of 90 US cps and Underlying ROCEi of 29.4%
– The Board has determined to pay an interim dividend of 90 US cents per share (or US$4.6 billion), equivalent to a 69% payout ratio.
1
Results for the half year ended 31 December 2022
| Half year ended 31 December | 2022US$M | 2021US$M | Change% |
| Revenue | 25,713 | 30,527 | (16%) |
| Profit from operations | 10,833 | 14,845 | (27%) |
| Attributable profit (total operations) | 6,457 | 9,443 | (32%) |
| Basic earnings per share (cents) | 127.5 | 186.6 | (32%) |
| Interim dividend per share (cents) | 90 | 150.0 | (40%) |
| Net operating cash flow | 6,770 | 11,529 | (41%) |
| Capital and exploration expenditure | 3,027 | 2,878 | 5% |
| Net debt | 6,910 | 6,090 | 13% |
| Underlying EBITDA | 13,230 | 18,463 | (28%) |
| Underlying attributable profit | 6,597 | 9,715 | (32%) |
| Underlying basic earnings per ordinary share (cents)i | 130.3 | 192.0 | (32%) |
BHP Chief Executive Officer, Mike Henry:
“Jody Byrne, a rail yard technician in our team at Port Hedland in Western Australia, was fatally injured in a shunting incident on Tuesday, 7 February. Jody was a respected and valued member of our company since 2013. Our deepest sympathies and thoughts are with his family, friends and colleagues, and we are supporting them in any way we can at this difficult time. Investigations into the incident are underway, and we will act on the findings.
“BHP has today announced a strong first half dividend of 90 US cents per share, on the back of solid operating performance. During the half, we delivered well on the production front, with Western Australia Iron Ore posting another record half. BHP remains the lowest cost major iron ore producer globally. We continued to make strong progress on executing our strategy, including the development of growth options.
“Significant wet weather in our coal assets impacted production and unit costs, as did challenges in securing sufficient labour. Inventory movements during the half contributed to costs, including the planned draw-down at Olympic Dam after inventory built up during the smelter refurbishment last year. We expect these factors to abate in the second half and for unit costs to fall, in line with revised guidance.
“Jansen Stage 1 in Canada is on track for first potash production in late calendar year 2026, and we have accelerated Stage 2 studies. In Western Australia, we are progressing studies to develop options to lift iron ore production to 330 million tonnes per year, supported by our industry leading cost position.
“We are seeing ongoing positive exploration results from Oak Dam, which provides growth potential for our copper business in South Australia. Our offer for OZ Minerals received unanimous support from their Board ahead of consideration by their shareholders. In Queensland, together with our joint venture partner, Mitsubishi Development Pty Ltd, we have initiated a process to divest the Daunia and Blackwater mines.
“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.”