BHP annual profit rises 2%, says open to more debt for acquisitions Reuters

(Reuters) – BHP Group on Tuesday reported better-than-expected underlying annual profit on growth in its iron ore and other businesses and said it was comfortable raising its debt target for potential acquisitions.

“We are comfortable moving above our net debt target temporarily to execute value-enhancing opportunities in the portfolio,” said the company, which pulled out of a $49 billion deal for Anglo American ( JO: ) earlier this year.

The world’s largest listed miner’s net debt was $9.1 billion in fiscal 2024, about the middle of its target range of $5 billion and $15 billion. Its net operating cash flow was $20.7 billion.

The miner expects capital and exploration spending of around $10bn in FY2025 and an average of $11bn per annum over the medium term from FY26.

BHP’s 2024 fiscal year profit was supported by record iron ore production for the second consecutive year and resilient average realized prices that offset weak coal prices and the sale of two of its coal mines.

Underlying attributable profit for the year ended June 30 was $13.66 billion, beating a Visible Alpha consensus of $13.26 billion and ahead of profit of $13.42 billion a year ago.

BHP declared a dividend of $0.74 per share, down from $0.80 each a year earlier.