BHP Group (BHP) is down 7.94% in the current market trading session at the price of $69.80 after the announcement of the full-year 2021 earnings report.
BHP Reported Full Year 2021 Financial Results
On 17th August 2021, BHP released its operating and financial results for the year ended on 30th June 2021. The report disclosed an attributable profit of $11.3 billion. It included an exceptional loss of $5.8 billion. The company has announced a record final dividend of $2.00 per share, bringing BHP’s return of more than $15 billion to the stakeholders for the full year 2021.
Underlying attributable profit of $17.1 billion was reported for the year 2021. It reflected higher commodity prices and strong operational performance. Underlying EBITDA of $37.4 billion was recorded. It was driven primarily by higher iron ore and copper prices, record volumes at WAIO, and additional volumes from the Spence Growth Option.
Funding Assistance for Renova Foundation
BHP stated that it remained devoted to funding the Renova Foundation to progress the remediation and compensatory programs. These programs are meant to restore the atmosphere and reestablish societies affected by the Samarco tragedy. BHP has reported a total income statement charge of $1.2 billion given to the Samarco dam failure for the 2021 year. Compensation and financial assistance of approximately R$4.7 billion have been paid to support approximately 336,000 people affected by the Fundão dam failure. Resettlement of communities continued to advance regardless of the ongoing Covid-19 pandemic.
Woodside and BHP Created a Global Energy Company
On 17th August 2021, BHP Group announced that it has entered into a merger agreement with Woodside Petroleum to combine oil and gas portfolios by all stock-mergers to create a global top independent energy company.
According to the deal, the company’s all oil and gas resources would merge with Woodside. Woodside would own 52% of the existing Woodside share and 48% would be owned by existing BHP’s shareholders. The transaction is subject to due diligence, negotiations, and satisfaction of conditions. The merged company will have a high-margin oil portfolio, long-life LNG assets, and the financial resilience to help the energy supply needed for global growth and development.
BHP Approved Investment in Jansen Potash Project
BHP ratified $5.7 billion in capital expenditure for the Jansen stage 1 potash project. CEO Mike Henry remarked that Jansen is in line with its strategy to expand exposure to future-facing commodities in world-class assets. This is an important milestone for BHP and will be valuable for shareholders for generations, he added.
