BHP : Anuncio de los resultados

Release Time	IMMEDIATE
Date	16 August 2022
Number	26/22
	BHP RESULTS FOR THE YEAR ENDED 30 JUNE 2022

Note: All guidance is subject to further potential impacts from COVID-19 during the 2023 financial year.

Safe, reliable production

• There have been no fatalities at BHP for over three-and-a-half-years.High-potential injury frequencyi declined by 30% during the year.
• Our strong focus on safety and health includes the elimination from BHP of sexual harassment, racism and bullying. We have made strong progress during the year on implementing our suite of critical controls, including increased security measures, and implementing an alcohol consumption limit across our Minerals Australia villages. We have also held safety stops across our global workforce focused on preventing this behaviour.
• We achieved our short-term target to maintain operational greenhouse gas emissions at or below 2017 financial year levels while we continue to grow our business.
• We launched our new social value framework and scorecard that outlines our 2030 goals, metrics and milestones.

Operational excellence: Record sales at Western Australia Iron Ore (WAIO) and record free cash flow generation

• Reliable operational performance at WAIO, with record sales (on a 100% basis) for the third consecutive year and the South Flank Project ramp up ahead of schedule.
• Escondida achieved record material mined and near-record concentrator throughput.
• Profit from operations of US$34.1 billion, up 34% from the prior year, and record Underlying EBITDAii of US$40.6 billion at a record marginii of 65% for continuing operations.
• Attributable profit of US$30.9 billion and record Underlying attributable profitii of US$23.8 billion, up 39% from the prior year for total operations.
• Net operating cash flow of US$29.3 billion and record free cash flowii of US$24.3 billion for continuing operations, reflects higher coal and copper prices and disciplined cost control.
• We paid US$17.3 billion in tax, royalty and other payments to governments in the 2022 financial year.iii

Disciplined capital allocation: Production shafts at Jansen complete and Jansen Stage 1 progressing to plan

• Capital and exploration expenditure of US$6.1 billion for continuing operations. Capital and exploration expenditure is expected to be approximately US$7.6 billion and US$9.0 billion for the 2023 and 2024 financial years.
• The Jansen Stage 1 project is tracking to plan and we are working to bring forward first production into 2026, while also assessing options to accelerate Jansen Stage 2.
• At WAIO we have revised medium-term production guidance to greater than 300 Mtpa and we are assessing 330 Mtpa expansion alternatives.
• In exploration, we continue to advance copper targets in a number of countries as well as our nickel exploration programs in Canada and Australia.
• Net debtii at US$0.3 billion, compared to US$4.1 billion at 30 June 2021.

Value and returns: Record US$36.0 billion of total announced returns to shareholders

• The Board has determined to pay a final dividend of US$1.75 per share or US$8.9 billion, which includes an additional amount of US$0.60 per share (equivalent to US$3.0 billion) above the 50% minimum payout policy. Total cash dividends announced of US$3.25 per share, equivalent to a 77% payout ratio.
• The merger of BHP's Petroleum business with Woodside Energy was completed on 1 June 2022 and BHP paid a fully franked in specie dividend of US$3.86 per share or US$19.6 billion.
• The divestment of BHP's 80% interest in BMC was completed on 3 May 2022.
• The unification of BHP's dual listed corporate structure was completed in January 2022.
• Underlying return on capital employedii strengthened to 48.7%.

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News release

Results for the year ended 30 June 2022

	2022	2021	Change
Year ended 30 June1	US$M	US$M	%
Total operations
Attributable profit	30,900	11,304	173%
Basic earnings per share (US cents)	610.6	223.5	173%
Dividend per share (US cents)	325.0	301.0	8%
In specie dividend on merger of Petroleum with Woodside (US cents)	386.4	-	-
Net operating cash flow	32,174	27,234	18%
Capital and exploration expenditure	7,545	7,120	6%
Net debt	333	4,121	(92%)
Underlying attributable profit	23,815	17,077	39%
Underlying basic earnings per ordinary share (US cents)ii	470.6	337.7	39%
Continuing operations
Profit from operations	34,106	25,515	34%
Underlying EBITDA	40,634	35,073	16%
Underlying attributable profit	21,319	16,985	26%
Net operating cash flow	29,285	25,883	13%
Capital and exploration expenditure	6,111	5,804	5%
Underlying basic earnings per ordinary share (US cents)ii	421.2	335.9	25%

1 BHP's Petroleum business has been presented in this report as discontinued operations. BMC is not considered to meet the criteria for classification as a discontinued operation given its relative size to the Group and the Coal segment. The comparative income statement and cash flow statement have been restated accordingly.

BHP Chief Executive Officer, Mike Henry:

"BHP delivered strong operational performance and disciplined cost control to realise record underlying earnings of US$40.6 billion and record free cash flow of US$24.3 billion. We have reduced debt and announced a final dividend of US$1.75 per share, bringing total cash dividends announced for the full year to a record US$3.25 per share.

BHP's total economic contribution including payments to employees, suppliers, communities, governments and shareholders totalled US$78.1 billion. This includes US$17.3 billion paid to governments through taxes and royaltiesand US$19.6 billion paid to shareholders after the merger of our Petroleum business with Woodside.

These strong results were due to safe and reliable operations, project delivery and capital discipline, which allowed us to capture the value of strong commodity prices. BHP remains the lowest cost iron ore producer globally and we delivered record annual sales from Western Australia Iron Ore.

I am most proud of our safety performance: BHP has now achieved three-and-a-half years without a fatality and the rate of high-potential injuries has dropped by a third in the past 12 months. We continue to make progress in building inclusive, diverse and high-performingteams and culture, and we remain unwavering in our focus on eliminating sexualharassment, bullying and racism from BHP.

BHP enters the 2023 financial year in great shape strategically, operationally and financially, and well prepared to manage an uncertain near-termenvironment. During the year, we unified BHP's corporate structure, merged our Petroleum business with Woodside, completed the sales of our interests in the BMC and Cerrejón energy coal assets,and decided to retain and operate our New South Wales Energy Coal business until mine closure in 2030. We have improved our platform for growth through the Jansen potash project, iron ore and copper.

We are pursuing options to deliver greater value for shareholders by growing the business and our exposure to future- facing commodities. At Western Australia Iron Ore, the ramp-up of South Flank is ahead of schedule and we have revised our medium-term production guidance to more than 300 Mtpa. In the 2023 financial year, we are assessing expansion alternatives to take us toward 330 Mtpa of production.

In Canada, we completed the production shafts at our Jansen potash project and are working to bring forward first production into 2026, as we assess options to accelerate Stage 2. At the same time, we continue to assess and add toour options in copper and nickel.

We expect China to emerge as a source of stability for commodity demand in the year ahead, with policy support progressively taking hold. At the same time, we expect to see a slowdown in advanced economies as monetary policy tightens, as well as ongoing geopolitical uncertainty and inflationary pressures. The direct and indirect impacts of Europe's energy crisis are a particular point of concern. Tight labour markets will remain a challenge for global and localsupply chains. Waves of COVID-19 infection continue to occur in the communities where we operate, and we are planning accordingly."

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BHP Results for the year ended 30 June 2022

Creating social value

By prioritising both financial and social value, we can create mutual benefit for our stakeholders and deliver long-term value for our shareholders. Social value is our positive contribution to society - our people, partners, the economy, the environment, local communities and shareholders, anchored in enduring, mutually beneficial and trusting relationships.

In June 2022, we launched our social value scorecard with 2030 goals, metrics and milestones. We expect to transition to the 2030 social value scorecard from the 2023 financial year. Further information on social value is detailed in the Operating and Financial Review in the Appendix 4E.

Social value: key indicators scorecard1

			H2	H1
	Target/Goal	FY22	FY22	FY22	FY21	Comment
Fatalities	Zero work-related fatalities	0	0	0	0	No fatalities over the last three-and-
						a-half-years.
High-potential injury (HPI)	Year-on-year improvement in HPI	0.14	0.12	0.17	0.20	30 per cent reduction from FY21
frequencyi (per million hours	frequency					and over 50 per cent decrease
worked)						since FY19.
Total recordable injury	Year-on-year improvement in TRIF	4.0	4.2	3.8	3.7	Decrease of 15 per cent since
frequency (TRIF)i						FY19. 8 per cent increase from
(per million hours worked)						FY21.
Operational greenhouse gas	Maintain FY22 operational GHG	11.0	5.1	5.9	14.6	Successfully achieved our short-
(GHG) emissionsi	emissions at or below FY17					term FY22 target primarily due to
(Mt CO2-e)	levels2,3 while we continue to grow					reductions from Escondida and
	our business and reduce					Pampa Norte renewable power-
	operational GHG emissions by at					purchasing agreements (PPAs) and
	least 30 per cent from FY20 levels3					on track to meet our FY30 targets
	by FY30					with the reductions in emissions
						from PPAs at Escondida, Spence,
						BMA, Olympic Dam and Nickel
						West.
Value chain emissionsi	Steelmaking: 2030 goal to support				 On track to deliver 2030 goal with
	industry to develop technologies					additional MoU signed with South
	and pathways capable of 30 per					Korea's POSCO, and commenced
	cent emissions intensity reduction					phase one studies and R&D under
	in integrated steelmaking, with					all existing partnerships with
	widespread adoption expected					steelmaking customers.
	post-2030
	Maritime transportation: 2030 goal					On track to deliver 2030 goal,
	to support 40 per cent emissions					including joining the US
	intensity reduction of BHP-					government's First Movers Coalition
	chartered shipping of BHP products					as a founding member in shipping.
Freshwater withdrawalsi	Reduce FY22 freshwater	107.4	54.0	53.4	108.4	Beat five-year target with 29 per
(GL)	withdrawals by 15 per cent from					cent reduction in FY22 from an
	FY17 levels4					adjusted FY17 baseline4.
Community and social	No less than one per cent of pre-tax	186.4	139.5	46.9	174.8	Positive impacts this year include
investment	profit (three-year rolling average)					(i) >8M hectares conserved,
(US$M)						restored or improved management;
						(ii) 22,400 people completing
						training aligned with the future of
						work, with >1,200 people obtaining
						paid employment.
Local procurement spend	Support the growth of local	2,673	1,450	1,223	2,176	Our procurement teams globally
(US$M)	businesses in the regions where we					and our Local Buying Programs in
	operate					Australia and Chile reached 2,700
						local suppliers in FY22.
Female workforce	Aspirational goal for gender	32.3	32.3	30.6	29.8	Almost 8,000 more female
participationi (%)	balance by the end of FY25					employees at the end of the year
						than FY165, with 47 per cent female
						external hires in FY22.
Indigenous workforce	Australia6: aim to achieve 8.0 per	8.3	8.3	8.0	7.2	Achieved previous target three
participationi (%)	cent by the end of FY25					years ahead of schedule. New
						target is to achieve 9.7 per cent by
						the end of FY27 with a greater focus
						on leadership.
	Chile7: aim to achieve 10.0 per cent	8.7	8.7	8.5	7.5	New target is to achieve 10 per cent
	by the end of FY26					by the end of FY25.
	Canada8: aim to achieve 20.0 per	7.2	7.2	5.2	5.1	New target is to achieve 20 per cent
	cent by the end of FY27					by the end of FY26.

1 All data points are presented on a total operations basis, unless otherwise noted, and are subject to non-financial assurance reviews. Some previously reported data points have been re-stated as a result of assurance reviews completed subsequent to release of information, reclassification or to reflect portfolio changes, including the divestments in FY22 of Petroleum and BMC. Re-stated figures are shown in italics. FY22 data for safety, social investment, local procurement and workforce participation includes the operated assets in our Petroleum business up to the date of the merger (1 June 2022) and BMC up to the date of completion of the sale (3 May 2022).

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News release

1. For our baseline year of FY17, our operational GHG emissions were 12.9 Mt CO2-e, adjusted for discontinued operations (Onshore US assets and Petroleum) and the divestment of BMC, and for method changes (use of AR5 Global Warming Potentials and move to facility-specific emissions calculation methodology for fugitives at Caval Ridge). These adjustments have also been applied to the GHG emissions stated in this table to aid comparability. No offsets have been retired for this purpose.
2. For our baseline year of FY20, our operational GHG emissions were 14.5 Mt CO2-e, adjusted for discontinued operations (Petroleum) and the divestment of BMC, and for method changes (use of AR5 Global Warming Potentials and move to facility-specific emissions calculation methodology for fugitives at Caval Ridge). These adjustments have also been applied to the GHG emissions stated in this table to aid comparability. The use of carbon offsets will be governed by BHP's approach to carbon offsetting described at bhp.com/climate.
3. For our baseline year of FY17, our freshwater withdrawals were 152.2 GL (on an adjusted basis, excluding Onshore US assets, Petroleum and BMC). The FY17 baseline data has also been adjusted to account for: the materiality of the strike affecting water withdrawals at Escondida in FY17, improvements to water balance methodologies at WAIO and BMA and exclusion of hypersaline, wastewater, entrainment and supplies from desalination. These adjustments have also been applied to FY22 and to FY21 to aid with comparability.
4. In FY16, our female representation was 17.6%.
5. Minerals Australia operations employees in Australia.
6. Minerals Americas operations employees in Chile.
7. Jansen Potash project and operations employees in Canada. Previously reported numbers included contractors.

Samarco

BHP Brasil remains committed to Samarco supporting the Renova Foundation and its work to progress the remediation and compensatory programs to restore the environment and re-establish communities affected by the Fundão dam failure, as set out in the Framework Agreement entered into in March 2016 by BHP Brasil, Samarco, Vale and relevant Brazilian authorities.

Further information on the remediation and compensation programs, and resettlement of communities is detailed in section 8 'Samarco' of the Operating and Financial Review in the Appendix 4E.

BHP has reported a total income statement charge of US$1.1 billion (after tax) in relation to the Fundão dam failure for the 2022 financial year. This charge is recognised as an exceptional item. Additional information is included in note 4 'Significant events - Samarco dam failure' of the Financial Statements in the Appendix 4E.

BHP Brasil, Samarco, Vale and Federal and State prosecutors have been engaging in negotiations to seek a definitive and substantive settlement of the obligations under the Framework Agreement and the R$155 billion (approximately US$30 billion) Federal Public Prosecution Office claim. Outcomes of the negotiations are highly uncertain and it is therefore not possible to provide a reliable estimate of potential outcomes and there is a risk that a negotiated outcome may be materially higher than amounts currently reflected in the Samarco dam failure provision. The provision may also be impacted by decisions in, or resolution of, existing and potential legal claims in Brazil and other jurisdictions, including the UK.

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BHP Results for the year ended 30 June 2022

Financial performance

Note: All guidance is subject to further potential impacts from COVID-19 during the 2023 financial year.

Earnings and margins

• Attributable profit of US$30.9 billion includes an exceptional gain of US$7.1 billion (2021: US$11.3 billion, which includes an exceptional loss of US$5.8 billion).
• The exceptional gain of US$7.1 billion (after tax) reflects a net gain on merger of BHP's Petroleum business with Woodside of US$8.2 billion which is reported as discontinued operations, and a gain on disposal of BMC of US$840 million. This was partially offset by the current year impact of the Samarco dam failure of US$1.1 billion, corporate structure unification costs of US$428 million and an impairment of US deferred tax assets no longer expected to be recoverable after the Petroleum demerger of US$423 million.
• Underlying attributable profit of US$23.8 billion for total operations (2021: US$17.1 billion) reflects disciplined cost and production performance to realise higher margins due to strong commodity prices.
• Profit from operations (continuing operations) of US$34.1 billion (2021: US$25.5 billion) increased as a result of higher coal and copper prices, strong underlying operational performance, including record sales at WAIO and near- record concentrator throughput at Escondida, disciplined cost control supported by cost reduction initiatives across our assets and favourable exchange rate movements. This was partially offset by COVID-19 restrictions and supply constraints, lower copper grades at Escondida, higher diesel, electricity and consumable prices, significant wet weather at BMA and the impacts from maintenance, including the planned major smelter maintenance campaign at Olympic Dam and unplanned smelter outage at Nickel West.
• The total impact from COVID-19 on our operations was US$1.5 billion (pre-tax) (2021: US$729 million). This
  represents the following impacts: lower volumes at our operated assets of US$1.2 billion (2021: US$230 million)
  due to labour and supply constraints and direct costs of US$277 million incurred (2021: US$499 million, reported as an exceptional item), from continued application of our COVID-19 controls and demurrage charges caused by COVID-19 due to delays. The most recent wave of COVID-19 infection has peaked in Australia and is now declining. In Chile, while the infection wave has not yet peaked, it is unlikely to be as impactful as previous waves. Our current controls are continuously assessed to ensure our people remain safe and impacts to operations are minimised. We remain vigilant and ready to respond to the possibility of future waves.
• Underlying EBITDA of US$40.6 billion (2021: US$35.1 billion). Additional commentary is included on page 12.
• Record underlying EBITDA margin of 65 per cent (2021: 64 per cent).
• Underlying return on capital employed strengthened to 48.7 per cent (2021: 32.5 per cent). Underlying return on capital employed, excluding Petroleum, is approximately 48.1 per cent.

Costs

• Unit costsii were 13 per centiv higher across our major assets largely reflecting COVID-19 related costs and inflationary pressures including diesel and electricity.
• Unit costs at WAIO were in line with full year guidance (based on guidance exchange rate of AUD/USD 0.78). On a C1 basis excluding third party royalties, unit costs were higher than the prior year at US$15.05 per tonne (2021: US$12.98 per tonne) driven by higher diesel prices, costs associated with the South Flank ramp up, higher rail track maintenance costs and COVID-19 related costs.
• Escondida unit costs finished the year at approximately the mid-point of the guidance range (based on guidance exchange rate of USD/CLP 727). This reflects strong cost discipline despite higher prices for consumables, workforce bonus payments on signing of a new collective bargaining agreement, a planned increase in material mined, COVID-19 related costs and lower by-product credits.
• BMA unit costs were marginally above the revised Queensland Coal guidance range (based on guidance exchange rate of AUD/USD 0.78) primarily due to the impact of the divestment of BMC and higher diesel and electricity prices.

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