February 18, 2025 07:57 GMT
BASIC INDUSTRIES: BHP H1 Results
BASIC INDUSTRIES
BHP
Results mostly in line; EBITDA looks soft vs. BBG consensus though overnight analyst takes imply it was in line with expectations. Net debt ticked higher with a guide to move temporarily outside of the target range. Interim div lowered to the base of the 50% policy ratio.
- H1 revs USD 25.2bn (-8% YoY; in line).
- H1 EBITDA (-11% YoY; 3% miss) w/ copper slightly ahead and Iron/Coal slightly behind.
- H1 CFO USD 8.3bn (-6% YoY; in line). H1 CapEx USD 5.2bn (+10% YoY; in line).
- H1 CFO less CapEx USD 3.1bn (-25% YoY; 1% beat).
- USD 2.5bn interim dividend is at the base 50% policy ratio.
- Net debt USD 11.8bn vs. USD 9.1bn/12.6bn at FY24/H124.
- Gearing of 19.2% vs. 15.7%/21.7%. Reported EBITDA leverage 0.4x.
- CEO played down large-scale M&A prospects; will focus on organic growth.
- “For FY25, the Group’s net debt balance is expected to increase to around the top end of the net debt target range following completion of the Vicuña transaction and payment of the H2 Samarco settlement obligations.”
- “We are comfortable to move above our net debt target temporarily to execute value accretive opportunities and support future investments such as Vicuña.”
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