(Reuters) -BHP Group reported a better-than-expected annual underlying profit on Tuesday due to growth at its iron ore and copper businesses and said it was comfortable with raising its debt target for any potential acquisitions.
“We are comfortable to move above our net debt target temporarily to execute value accretive opportunities in the portfolio,” said the company, which walked away from a $49 billion deal for Anglo American earlier this year.
Net debt of the world’s largest listed miner stood at $9.1 billion in fiscal 2024, roughly at the midpoint of its target range of $5 billion and $15 billion. Its net operating cash flow was $20.7 billion.
The miner forecast capital and exploration expenditure of around $10 billion in fiscal 2025 and an average $11 billion a year in the medium term from FY26.
BHP’s fiscal 2024 profit was underpinned by a record iron ore output for a second straight year and resilient average realized prices, which offset weak coal prices and the sale of two of its coal mines.
Underlying attributable profit for the year ended June 30 came in at $13.66 billion, beating a Visible Alpha consensus of $13.26 billion and ahead of the $13.42 billion profit a year ago.
BHP declared a dividend of $0.74 per share, below the prior year’s $0.80 apiece.
(Reporting by Sameer Manekar in Bengaluru; Editing by Arun Koyyur)
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