BHP Group Net Profit Drop

BHP Group recently announced an 86% decrease in first-half net profit due to write-downs in the value of its nickel operations and increased cash reserves for costs related to the 2015 Samarco disaster.

Stable Underlying Profit Amid Revenue Boost

Despite a rise in revenue from higher iron ore and copper prices, the world's largest miner by market value stated that its underlying profit remained relatively unchanged compared to the previous year.

For the six months ending in December, BHP reported a net profit of $927 million, a significant drop from $6.46 billion during the same period the year before. Revenue saw a modest increase of 6% to reach $27.23 billion. The company's underlying profit of $6.60 billion surpassed market expectations of $6.43 billion, as per a consensus estimate compiled by Visible Alpha from 15 analyst forecasts.

Dividend Decline and Impairment Charges

The company's dividend took a hit, with directors declaring an interim dividend of 72 cents per share, down from 90 cents per share a year prior.

BHP also disclosed impairment charges amounting to $5.64 billion related to its nickel business and the Samarco disaster, which were previously signaled to the market.