Own BHP shares? Here’s what the market expects from its half year results

BHP Group Ltd (ASX: BHP) shares will be in focus this month.

That’s because the mining giant is scheduled to release its half year results on 21 February.

And with prices of commodities such as coal, copper, and iron ore booming right now, another robust result is likely to be revealed.

Ahead of the release, let’s take a look at what analysts are expecting from the Big Australian.

What is expected from BHP’s half year results?

According to a note out of Goldman Sachs, its analysts expect the miner to deliver a result a touch softer than consensus estimates. It commented:

GSe underlying EBITDA US$13.7bn vs. cons US$14.3bn (difference is GS lower on met & thermal coal; US$2.7bn vs. cons US$3.0bn, lower on Nickel West). NPAT US$6.9bn vs. cons US$7.0bn.

It also feels the market may be a touch optimistic on the BHP dividend and is forecasting an interim dividend of “US88cps (65% payout NPAT) vs. cons US98cps (71% payout).”

What else should you look for?

Another thing that could have an impact on BHP shares is its outlook commentary.

Goldman revealed that it will be looking for comments on the miner’s plans for growth projects and mergers and acquisitions (M&A). It said:

We expect focus will be on growth including any update on the copper & nickel growth strategy (timing of Chile projects considering proposed fiscal changes, nickel growth/ e.g. Kabanga) & portfolio (possible further met coal divestments, further M&A), capex guidance (US$9bn for FY24, US$10bn for FY25; ~50% is copper), & decarb spend (US$4bn until FY30), and a possible increase in Samarco liability provision (balance was US$3.4bn mid-CY22). We recently took a detailed look at BHP’s copper production in Chile and assessed the 2-stage smelter at Olympic Dam and synergies with OZL.

The post Own BHP shares? Here’s what the market expects from its half year results appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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