BHP rewards investors with record dividend as FY profit reaches four-year high

BHP has revealed it will pay out a record dividend after full-year underlying earnings jumped by 33% to US$8.9 billion in the 12 months through to June 2018.

The world’s top mining company confirmed it will be raising its annual dividend by 42% in its full-year results, which indicated that profits hit a four-year high, based on stronger commodity prices.

The final dividend for the current period stood at 63 cents per share, taking the full-year payout to $1.18 a share, up from 83 cents last year.

Despite achieving a significant rise in underlying earnings, BHP’s net profit fell 37% to $3.71 billion due to the booking of $5.2 billion in impairment charges, mainly related to a writedown in value of its US shale assets.

“We have announced a record final dividend for shareholders which reflects strong operating performance, solid prices and capital discipline,” said CEO Andrew Mackenzie.

“Our relentless focus on safety and productivity has released additional volumes across our supply chain, with 8% volume growth for the year.

“Our balance sheet is strong, with net debt now at the lower end of our target range, and our investment plans on track across iron ore, copper, coal and petroleum.”

However, BHP warned that key oil, copper and coal units are forecast to see rising costs and also highlighted concerns over slower growth in China and global trade tensions.