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BHP Group Ltd ADR BHP

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Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Record Interim Dividend the Highlight in BHP’s First Half, AUD 33 FVE Retained

Analyst Note

| Mathew Hodge, CFA |

No-moat BHP Group delivered a strong first-half fiscal 2021 adjusted net profit after tax rose 16% to USD 6.0 billion. Overall, group adjusted EBIT rose 25% to USD 11.3 billion. Iron ore was the key driver, with divisional adjusted EBIT up 47% to USD 9.3 billion. The improvement was driven primarily by the 33% higher iron ore price, while volumes were up 7%. Copper EBIT was also notable, nearly doubling to USD 2.9 billion. Coal and petroleum lagged, collectively losing USD 0.7 billion of EBIT versus a USD 1.3 billion profit a year ago. BHP’s received oil and hard coking coal prices slipped about 30%.

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Company Profile

Business Description

BHP is a leading global diversified miner supplying iron ore, copper, oil, gas, and metallurgical. A 2001 dual-listed merger of BHP Limited (now BHP Ltd.) and Billiton PLC (now BHP PLC) created the present-day BHP. Shareholders in each company have equivalent economic and voting rights in BHP as a whole. Major assets include Pilbara iron ore, Queensland coking coal, Escondida copper and conventional petroleum assets, principally in Australia and the Gulf of Mexico. Onshore U.S. oil and gas assets were sold in 2018.

Contact
171 Collins Street, Level 18
Melbourne, VIC, 3000, Australia
T +61 396093333
Sector Basic Materials
Industry Other Industrial Metals & Mining
Most Recent Earnings —
Fiscal Year End Jun 30, 2021
Stock Type —
Employees 31,589

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