BHP’s Profit Slump Prompts Dividend Cut as China Falters.

BHP Group Ltd. said first-half profit slumped 23% as China’s faltering economy dampened demand for iron ore, prompting the miner to trim its interim dividend to an eight-year low.

The biggest miner posted underlying attributable profit for the six months to Dec. 31 of $5.08 billion, it reported Tuesday. That was below analyst estimates of $5.39 billion. Steelmaking ingredient iron ore remains the company’s biggest earner — but only just — with copper now accounting for 44% of its revenue.

BHP’s move to cut its dividend to 50 cents a share, down from 72 cents the year before, will reinforce speculation the board has a renewed focus on capital management as it pursues growth. Analysts were anticipating a dividend of 53.3 cents.

The slip in profits continues a trend for BHP since it posted record earnings of $33.1 billion for the year to June 2022 as iron ore demand soared. Annual profits have since more than halved, with declining capital returns and rising capital expenditure weighing on its shares.

Source: FINANCE.YAHOO