BHP's profits fell by 30% year over year in the second half of 2022.
The leading mining firm faces inflation and higher labor costs amid a slump in commodity prices.
BHP, the world's largest mining firm, said its revenue fell 16% to $25.7B in the second half of 2022, compared to the same period in 2021.
- The firm announced a pre-tax profit of $10.2B, a 30% decline year over year.
- The price of iron ore fell by 25% over the same six-month period compared to the previous year but has risen since November.
- The mining giant's results were “surprisingly poor,” said Tyler Broda, an analyst at RBC Capital Markets.
- BHP CEO Mike Henry noted that commodities are a "cyclical industry" and told the Financial Times that he expects “strengthening activity” in China to boost global demand for commodities.
Skyrocketing commodity prices in 2021 led BHP to pay the largest dividend in its 138-year history.
