Why Mining Giant BHP Shares Are Sliding Premarket Tuesday
Portfolio Pulse from Lekha Gupta
BHP Group Ltd (NYSE:BHP) shares fell in premarket trading after reporting its half-year results for the period ended December 31, 2023. Revenue increased by 6% Y/Y to $27.2 billion, driven by higher iron ore and copper prices and contributions from new mines. However, unit costs rose by 5.4%, and iron ore production decreased by 2% Y/Y. Underlying EBITDA grew by 5% Y/Y to $13.9 billion, with a slight decrease in margin. The company declared an interim dividend of $0.72 per share and maintains its capital and exploration expenditure forecast for FY24 and FY25.
February 20, 2024 | 11:17 am
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BHP Group Ltd reported a 6% Y/Y revenue increase to $27.2 billion for H2 2023, with a slight EBITDA growth and a declared dividend of $0.72. Despite positive revenue, increased costs and a drop in iron ore production led to a premarket share price decline.
The premarket share price decline of BHP Group Ltd is likely due to the mixed financial results reported for the half year ended December 31, 2023. While revenue and EBITDA showed growth, the increase in unit costs and a decrease in iron ore production may have concerned investors, leading to negative short-term price movement.
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