Analyst Note| Jon Mills, CFA |
No-moat BHP’s fiscal 2022 result was very strong, driven by higher commodity prices, partially offset by increased costs and lower volumes. Adjusted net profit after tax was USD 23.8 billion, or USD 4.70 per share, up from USD 17.1 billion in 2021. This included USD 2.5 billion of aftertax operating profits relating to discontinued petroleum operations. Adjusted EBITDA, excluding petroleum, rose 16% to USD 40.6 billion, 7% above our estimates, driven by higher prices and favourable foreign exchange rates, partially offset by higher costs and lower volumes. Higher average realised prices for metallurgical coal, thermal coal, copper and nickel offset lower average realised prices for iron ore.