Iron ore truck WA

BHP has released its 2022 financial year results, recording strong fiscal performance and announcing a final dividend of US$1.75 per share, bringing total cash dividends announced for the full year to a record US$3.25 per share.  

BHP Chief Executive Officer, Mike Henry, said the strong showing can be credited to the company’s ongoing safe and reliable operations in addition to record sales of iron ore.

“BHP’s total economic contribution including payments to employees, suppliers, communities, governments and shareholders totalled US$78.1 billion,” Mr Henry said.

“This includes US$17.3 billion paid to governments through taxes and royalties and US$19.6 billion paid to shareholders after the merger of our Petroleum business with Woodside. 

“These strong results were due to safe and reliable operations, project delivery and capital discipline, which allowed us to capture the value of strong commodity prices. 

“BHP remains the lowest cost iron ore producer globally and we delivered record annual sales from Western Australia Iron Ore.”

Mr Henry added that the company was well positioned to manage near term global uncertainties.

“BHP enters the 2023 financial year in great shape strategically, operationally and financially, and well prepared to manage an uncertain near-term environment,” Mr Henry said.

“During the year, we unified BHP’s corporate structure, merged our Petroleum business with Woodside, completed the sales of our interests in the BMC and Cerrejón energy coal assets, and decided to retain and operate our New South Wales Energy Coal business until mine closure in 2030.

“We have improved our platform for growth through the Jansen potash project, iron ore and copper. 

“We are pursuing options to deliver greater value for shareholders by growing the business and our exposure to future-facing commodities.

“At Western Australia Iron Ore, the ramp-up of South Flank is ahead of schedule and we have revised our medium-term production guidance to more than 300 Mtpa. In the 2023 financial year, we are assessing expansion alternatives to take us toward 330 Mtpa of production. 

“In Canada, we completed the production shafts at our Jansen potash project and are working to bring forward first production into 2026, as we assess options to accelerate Stage 2. At the same time, we continue to assess and add to our options in copper and nickel.”

China, the largest consumer of Australian iron ore, is expected to remain a strong source for stability in the industry, according to Mr Henry.

“We expect China to emerge as a source of stability for commodity demand in the year ahead, with policy support progressively taking hold,” Mr Henry said.

“At the same time, we expect to see a slowdown in advanced economies as monetary policy tightens, as well as ongoing geopolitical uncertainty and inflationary pressures. The direct and indirect impacts of Europe’s energy crisis are a particular point of concern.

“Tight labour markets will remain a challenge for global and local supply chains. Waves of COVID-19 infection continue to occur in the communities where we operate, and we are planning accordingly.”

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