BHP posts drop in FY profit, despite production records

BHP has posted a sharp fall in profit on lower prices for iron ore and copper, but expects to benefit from the "electrification mega-trend".

The mining giant on Tuesday revealed a 58 per cent fall in net profit to $US12.9 billion, amid cost pressures and global economic uncertainty.

Even accounting for the sold-off petroleum business, underlying attributable profit, which adjusts for discontinued operations of $US10.7 billion, fell by 37 per cent to $US13.4 billion.

"Our financial results for the year were strong, underpinned by reliable production, together with capital and cost discipline as we managed lower commodity prices and inflationary pressures," CEO Mike Henry said.

He said commodity demand has remained relatively robust in China and India, even as developed world economies have slowed substantially.