Mining giant BHP has posted a fall in profits amid tough global economic conditions but is positive on the demand outlook as China opens up.
BHP on Tuesday reported an underlying attributable profit of $US6.6 billion for the six months to December 31, down almost a third (32 per cent) from a year earlier.
Profit from operations in the half fell more than a quarter (27 per cent) to $US10.8b on lower prices for iron ore and copper, higher royalties paid on coal in Queensland and inflation.
But this was offset by record iron ore production and higher prices for coal and nickel.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) was $US13.2b, down 28 per cent.
Net operating cash flow was $6.8b, down 41 per cent.
"We are positive about the demand outlook in the second half of FY23 and into FY24, with strengthening activity in China on the back of recent policy decisions the major driver, BHP Chief Executive Mike Henry said.
BHP said it was also on track to meet its 2030 target on operational greenhouse emissions.
Capital expenditure on operational decarbonisation is expected to be around $US4b up to the 2030 financial year to align with 2030 and 2050 targets and maximise shareholder value, BHP said.
The acquisition of OZ Minerals is on track to be implemented by early May.
The global miner declared a fully franked interim dividend of US 90 cents a share, down 40 per cent from last year's record return to shareholders.
