Writedowns See Mining Giant BHP's Annual Net Profit Sink

BHP posted a 37 percent slump in annual net profit Tuesday, hurt by heavy impairment charges related to the sale of its US shale assets and costs associated with the Samarco disaster in Brazil.

Sydney, (UrduPoint / Pakistan Point News - 21st Aug, 2018 ) :BHP posted a 37 percent slump in annual net profit Tuesday, hurt by heavy impairment charges related to the sale of its US shale assets and costs associated with the Samarco disaster in Brazil.

The world's biggest miner's profit came in at US$3.7 billion in the year to June 30 after taking into account the previously disclosed "exceptional losses" which amounted to a massive US$5.2 billion.

Underlying profit -- its preferred measure which strips out one-off costs and is more closely watched by the market -- jumped 33 percent to US$8.9 billion, fuelled by robust commodity prices and higher production.

It allowed the company to declare a final dividend of 63 US cents, the highest it has ever paid for a six month period.

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

"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."BHP's share price dropped 1.1 percent in morning trade to Aus$32.80. But it has been surging this year and analysts said the underlying profit boded well for further rises.

"This dynamic may see analysts revising estimates upward, and could catalyse a break through four-year highs for BHP," said CMC Markets chief strategist Michael McCarthy.