Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Should You Buy BHP (ASX:BHP) Shares For Its HY Result?

BHP Group Ltd (ASX:BHP) has reported its half year result to 31 December 2018, should you buy shares?

BHP Group Ltd (ASX: BHP) has reported its half year result to 31 December 2018, should you buy shares?

BHP is a world-leading resources company, extracting and processing minerals (like iron ore and copper), oil and gas, and has more than 62,000 employees and contractors, primarily in Australia and the Americas. Headquartered in Melbourne, BHP has shares listed on both the ASX and London Stock Exchange (BHP Billiton Plc).

BHP’s Half Year Result

BHP reported that revenue from continuing operations increased by 1% to US$20.74 billion. Profit after taxation from continuing operations attributable to shareholders went up 117% to US$4 billion. Meanwhile, total statutory profit increased by 87% to US$3.76 billion.

However, underlying profit fell by 8% to US$3.73 billion and underlying earnings per share (EPS) dropped 8% to US70.4 cents.

Its underlying EBITDA was US$10.5 billion from continuing operations (click here to learn what EBITDA means).

BHP Dividend and Balance Sheet

BHP declared a dividend of US$0.55 per share, which goes along with the US$1.02 special dividend that was paid in January 2019 and a US$5.2 billion share buy-back. The resource giant said its net debt was $9.9 billion, which was down US$1 billion since June 2018.

Future BHP Growth Projects

In terms of future projects, BHP encountered oil at Trion in Mexico, hydrocarbons at Bongo-2 in Trinidad & Tobago and had early success with the copper exploration program in the Stuart Shelf in South Australia.

The resource giant also added ‘new optionality’ after acquiring interest in the Orphan Basis in offshore Eastern Canada and SolGold, which is a copper project in Ecuador.

BHP Management Comments

BHP CEO Andrew Mackenzie said: “Our focus on portfolio simplification, cash generation and capital discipline delivered higher cash returns to shareholders in the December 2018 half year. 

Since the beginning of 2016, we have reduced debt by US$16 billion, reinvested US$20 billion in the business and returned more than $US25 billion to shareholders.”

Is it time to buy BHP shares?

Mr Mackenzie said that BHP can expect a “strong second half”, with unit costs expected to improve across the business. But, the easy returns have probably already happened from the special dividend and buy-back.

With BHP being one of the biggest cyclical businesses in the world, the best time to buy it is at the bottom of the cycle. I don’t think we’re at the bottom of the cycle, that was during 2016.

I’d much rather invest in the proven shares in the free report below rather than BHP shares.

3 Proven ASX Shares To Consider Over BHP

[ls_content_block id=”14945″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content