BHP Group (ASX:BHP) to pay record US$8.9B in final dividend, shares gain

Australian multinational mining, metals, natural gas petroleum public company, BHP Group Limited (ASX:BHP), on Tuesday (16 August 2022), shared its financial results and business updates for the financial year ended 30 June 2022.

BHP, in its report, mentioned that it will be paying a final dividend of 175 US cents per share or US$8.9 billion. This includes an additional amount of US$0.60 per share, surpassing the 50% minimum payout policy. Total cash dividends announced by the company stand at US$3.25 per share, equal to a whopping 77% payout ratio.

Meanwhile, BHP shares opened 3.854% higher at AU$40.420 apiece on the ASX (as of 10:15 AM AEST).

Key highlights from BHP’s  financial report and  business update for FY22:

• Underlying EBITDA stands at 65% margin, record US$40.6 billion (2021:US$35.1 billion).
• Record shareholder return of 175 US cents per share, equivalent to US$8.9 billion.
• US$17.3 billion paid to government via taxes and royalties.
• Underlying attributable profit from total operations stand at US$23.8 billion, up 39% from previous corresponding period.
• Attributable profit of US$30.9 billion including an exceptional gain of US$7.1 billion against US$11.3 billion including an exceptional loss of US$5.8 billion in 2021.
• Profit from operations is US$34.1 billion against US$25.5 billion in 2021.
• BHP consistently delivered more than US$15 billion in net operating cash flow.
• During the period, gross debt decreased by US$4.6 billion to US$16.4 billion; net debt at US$0.3 billion, compared to US$4.1 billion as at 30 June 2021.
• Net operating cash flows of US$29.3 billion (2021:US$25.9 billion).
• Free cash flow of US$24.3 billion (2021:US$19.6 billion). This includes capital and exploration spending of US$6.1 billion.
• Total impact from COVID-19 on BHP’s operations was US$1.5 billion.
• BHP boasts of a robust liquidity position with US$17.2 billion in cash and cash equivalents.

As per the statement released by BHP, the company has entered the 2023 financial year in great shape – strategically, operationally, and finically. During the year the company unified BHP’s corporate structure, merged its petroleum business with Woodside, completed the sales of its interests in the BMC and Cerrejon energy coal assets, and decided to retain and operate its New South Wales Energy Coal business until mine closure in 2030. BHP stated that it has also improved its platform for growth via the Jansen potash project, iron ore and copper.

How has BHP share price fared in last few weeks?

In last one month, the share price of BHP has gained 8.90% though, it has deteriorated 15% in last six months. While in last one year, the shares have lost 22.68% but on year-to-date basis, the shares have gone down 5%. It should be noted that in last five years, BHP shares have gone up 58.57% (as of 10:52 AM AEST, 16 August 2022).