(RTTNews) – BHP (BHP.AX, BLT.L, BBL, BHP) reported that its profit attributable to shareholders for the year ended 30 June 2020 decreased to US$7.96 billion or 157.0 US cents per share from US$8.31 billion or 159.9 US cents per share in 2019.
The 2020 financial year results included an exceptional loss of US$1.1 billion. The exceptional loss was related to the impairment of Cerro Colorado, a provision for cancellation of power contracts as part of a shift towards 100 per cent renewable energy at Escondida and Spence, COVID-19 related costs and the current year impact of the Samarco dam failure.
Underlying attributable profit was US$9.1 billion broadly in line with the prior year.
Profit from operations dropped to US$14.4 billion from last year’s US$16.1 billion, as a result of lower prices, lower volumes, increased deferred stripping depletion at Escondida and an increase in the closure and rehabilitation provision for closed mines. It was partially offset by the favourable impacts of exchange rate movements, better productivity, including record production at WAIO, Caval Ridge and Poitrel.
Annual revenue declined to US$42.93 billion from US$44.29 billion in the prior year.
The company expects most major economies will contract heavily in 2020, China being the exception. Recovery will vary considerably by country.
The company expects that China and the OECD will return to their pre COVID-19 trend growth rates from around 2023. Developing economies outside East Asia may take longer.
The Organisation for Economic Co-operation and Development or OECD is an intergovernmental economic organisation with 37 member countries, founded in 1961 to stimulate economic progress and world trade.
BHP expects Group copper equivalent production for the 2021 financial year to be slightly lower than the 2020 financial year, due to impacts from a reduction in operational workforces in copper in response to COVID-19 and petroleum natural field decline.
The company will pay a final dividend of 55 US cents per share or US$2.8 billion, which includes an additional amount of 17 US cents per share above the 50% minimum payout policy.
Separately, BHP announced new appointments to the Executive Leadership Team.
Ragnar Udd will become President Minerals Americas, effective 1 November 2020. Udd will be accountable for BHP’s copper operations in Chile including Escondida and Spence, the Jansen potash development option, and non-operated joint ventures in copper, iron ore and coal. Daniel Malchuk will leave BHP at the end of 2020.
Laura Tyler will become Chief Technical Officer, effective 1 September 2020.
Caroline Cox will become Chief External Affairs Officer, effective 1 November 2020. Geoff Healy will leave BHP at the end of 2020.
Johan van Jaarsveld will become Chief Development Officer, effective 1 September 2020.
As previously announced, Peter Beaven will continue as Chief Financial Officer until 30 November 2020. David Lamont will commence in that role on 1 December 2020.
Malchuk and Healy will continue in their current roles until 31 October 2020.
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