BHP Group’s (ASX:BHP) Profit Surges 90% in 1HFY25 Despite Commodity Price Pressures

Highlights

• BHP formed a USD 2 billion joint venture with Lundin Mining for copper development in Argentina.
• An USD 0.50 per share dividend declared for a six-month period, with a record date of 7 March 2025 and payment date of 27 March 2025.
• BHP’s revenue fell 8% YoY to USD 25.18 billion, but profit from operations soared 90% YoY to USD 9.13 billion.

BHP Group Limited (ASX:BHP) is an international powerhouse in the resources sector. The company focuses on continuous growth through investing in key projects, including USD 3.2 billion in copper and potash.

The company has recently announced a dividend of USD 0.50 per share for the six-month period 31 December 2024, with a record date of 7 March 2025 and payment scheduled for 27 March 2025.

Half-Year Financial Performance

For the half-year ended 31 December 2024 (1HFY25), BHP reported revenue of USD 25.18 billion, reflecting an 8% YoY decline due to falling iron ore and coal prices. However, the company’s profit from operations surged 90% YoY to USD 9.13 billion. Underlying EBITDA in 1HFY25 reached USD 12.36 billion, an 11% drop from the previous year.
During the reported period, the company allocated USD 3.2 billion to potash and copper projects and a USD 2.0 billion joint venture with Lundin Mining for copper development in Argentina.

Outlook

As per BHP, the company  remains on track to meet its FY25 production guidance, with forecasts of:

• Copper production: 1,845 – 2,045 kilotonnes
• Iron ore production: 255 – 265.5 million tonnes
• Coal (BMA) production: 33 – 38 million tonnes
• NSWEC production: 13 – 15 million tonnes

Despite global uncertainties, BHP’s cost-control efforts and reliable operations are expected to sustain margins and cash flow. The company’s long-term vision is reinforced by its investments in future-facing minerals like potash and copper, alongside its partnership with Lundin Mining.

Additionally, a flexible capital expenditure approach and a steady pipeline of growth projects will help the company balance production targets with prudent debt management.

Share performance of BHP

BHP shares closed 1.43% higher at AUD 39.60 per share on 3 March 2025. Over the past year, BHP’s share price has dropped by almost 11.84% and in the last three months, it has declined by 2.75%.

52-week high of BHP is AUD 46.41, recorded on 22 May 2024 and 52-week low is AUD 38.28, recorded on 6 September 2024.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 03 March 2025. The reference data in this report has been partly sourced from REFINITIV.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Disclaimer

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