The attributable profit of the Australian-British multinational mining, metals and petroleum company BHP fell 58% year over year to nearly $12.9 billion, according to its financial results related to the first 6 months of the year, released on Tuesday.
The company earned around $30.9 billion during the first half of last year.
The net gain from the merger of BHP’s petroleum business with Australian petroleum exploration and production company Woodside, which was completed in fiscal year 2022 (FY22), contributed to the drop in profits, the company explained.
It further disclosed that the exceptional loss in attributable profit for FY23 stemmed from the effects of the dam breach at Samarco, a joint venture between BHP and the Brazilian mining giant Vale SA, as well as the Chilean tax reform, which required mining corporations to pay additional taxes and royalties to the government.
BHP posted around $53.8 billion in total revenue for the first half of the year, down 17% from about $65.1 billion during the same period last year.
Lower prices for iron ore, metallurgical coal, and copper, as well as the sale of BHP’s subsidiary BHP Mitsui Coal in FY22, were principally responsible for this reduction, which was only somewhat offset by higher average realized prices for thermal coal and nickel.
