BHP shares fluctuate as investors weigh lower dividend and copper outlook

BHP Group Ltd’s share price was volatile in early trading as investors reacted to the company’s lowest dividend payout since 2017, a positive copper outlook and CEO Mike Henry’s comments on potential trade policy impacts under Donald Trump.

Shares fluctuated between A$40.40 and A$41.15 before settling 0.3% lower at A$40.70 by 10:20 am AEDT. At midday, the company was 0.66% higher to $41.07.

The mining giant reported first-half revenue of US$25.2 billion, marking an 8% decline from the prior corresponding period, primarily due to weaker realised prices for iron ore and steelmaking coal.

Attributable profit rose to US$4.4 billion but underlying attributable profit fell 23% to US$5.1 billion after adjusting for HY24 exceptional losses. Some analysts had expected underlying profit to reach US$5.39 billion, according to Bloomberg.

"The troubles for Australia’s largest miner continued today, as BHP’s first-half-year profits missed estimates while also cutting its interim dividend to $0.50 a share," eToro market analyst Josh Gilbert said.

"These results today are the tell-tale sign of waning Chinese demand for BHP’s key commodities like iron ore and copper, with prices remaining in reverse in the last six months of 2024.