SYDNEY: Australian mining giant BHP on Tuesday recorded a major slump in annual profits, which dropped almost 40 percent as inflation bites and commodity prices fall.
The company’s latest financial statements showed it banked an annual underlying profit of US$13.4 billion, down 37 percent from last year, while global revenues fell 17 percent to US$53.8 billion.
BHP said the slowdown in China’s property sector remained a significant source of uncertainty, and could disrupt future demand for key iron ore exports used to make steel.
China’s recent decision to resume imports of Australian coal had “little discernible impact” on the company.
Despite the weaker-than-expected earnings, BHP said it remained confident that global demand for iron ore, coal and copper would remain “relatively robust”.
One of Australia’s heaviest carbon polluters, BHP also trumpeted its progress in cutting greenhouse gas (GHG) emissions – which it aims to reduce by 30 percent before the end of the decade.
“As of today, BHP has among the lowest absolute operational GHG emissions of the major miners,” chief executive Mike Henry said.
BHP’s financial results mirror those of rival Anglo-Australian mining company Rio Tinto, which reported a more than 40 percent fall in profits earlier this year.
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