BHP Flags Trade Tension Risks As Revenue, Profit Fall — Retail Unmoved Despite ‘Early Signs’ Of China Rebound

Australian mining giant BHP Billion Ltd. (BHP) posted a mixed first half for the 2024-25 fiscal year as the company’s earnings per share (EPS) surged year-on-year, but revenue and profit slumped during the period.

BHP’s first-half (H1) earnings per share (EPS) stood at $0.869, surpassing $0.183 during the same period in the previous year.

Its revenue during H1 stood at $25.2 billion, falling from $27.2 billion during the same period last year. However, its attributable profit for the period fell 23% to $5.1 billion – this is its lowest since 2020.

BHP’s bottom line during this period was impacted by a fall in revenue on account of weakness in Chinese demand and the closure of Nickel West and Western Australia Nickel operations, as well as loss on legal settlements.

This is reflected in BHP’s dividend payout as well – at $0.50 per share, it is the lowest since 2017. During the same period last year, BHP’s dividend payout stood at $0.72 per share.

However, the company expressed optimism that it is observing “early signs” of recovery in the Chinese market.

“The demand for BHP products remains strong despite global economic and trade uncertainties, with early signs of recovery in China, resilient economic performance in the US, and strong growth in India,” said BHP CEO Mike Henry.

Despite easing inflation across its markets, BHP underscored that “lingering labor market tightness” could impact the mining sector’s costs for the rest of the fiscal year 2025.

Another risk factor for the company is sluggish demand in developing economies, and BHP flagged “trade tensions” as a potential hurdle for demand recovery in developed markets.

Retail users on Stocktwits were divided about the BHP stock’s prospects, with sentiment hovering in the ‘neutral’ (52/100) territory at the time of writing. Message volume surged higher but stayed in the ‘high’ zone.

While BHP’s stock has fallen nearly 4.5% over the past six months, its one-year performance is considerably worse, with a decline of 11.3%.

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