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BHP shares rise on record FY22 results | BHP Group (ASX:BHP)

Grady Wulff
August 16, 2022

Mining giant BHP Group (ASX:BHP) has released its FY22 results today including record underlying EBITDA of US$40.6b, record sales volume from WA iron ore, and record material mined.

Profit from operations climbed 34%, while net debt was significantly reduced over the financial year.

BHP also announced a record $3.25 per share will be paid in dividends for the full year including a final dividend of US$1.75 per share.

The results came in mixed against analysts’ expectations, with underlying basic earnings per share falling short of some consensus expectations while underlying EBITDA beat some forecasts.

The mining giant flagged cost increases related to supply chain constraints and predicts lower than expected demand of iron ore from China in the medium-term as crude steel production plateaus.

Looking forward, the mining giant will increase capital spend in future facing commodities including exploration capital focused on copper and nickel, major capital in Jansen Stage 1 execution and other options in copper and nickel.

BHP also had two big business moves during FY22 including the merger of its petroleum business with Woodside Energy (ASX:WDS), and a US$5.8b takeover offer for OZ Minerals (ASX:OZL) which signals the intention to expand expansion operations in copper and nickel.

In terms of broker ratings following the release of the results, Macquarie have maintained an outperform rating on BHP with a price target of $48.00.

Since the results were released early this morning, investors have responded positively with shares in the mining giant trading 2-3% higher in the first half hour of trade.

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