The BHP Group Ltd (ASX: BHP) share price has been on a ride after releasing its HY22 numbers in the report.
Volatile BHP share price
Earlier in the morning, BHP shares went as high as $49.70. Over the next couple of hours, BHP shares fell 3.5% to $47.92.
There were a number of big growth numbers in the HY22 result: attributable profit rose 144% to US$9.4 billion, underlying attributable profit grew 77% to US$10.7 billion. net operating cash flow grew 42% US$13.3 billion and the underlying earnings per share (EPS) grew by 144% to US$1.87.
What particularly positively surprised me was the size of the BHP dividend which grew by 49% to US$1.50 per share.
BHP really benefited from the fact that all of the commodity prices were higher in the six months to 31 December 2021 compared to the six months to 31 December 2020.
What’s next?
No-one knows what is going to happen next with the BHP share price, or commodity prices. Or anything with the share market really. That’s why it’s a bit of a ‘risk’ to invest.
But I think it pays to think positively and think for the long-term.
BHP says it’s positive about the long-term global economic growth and commodity demand. Population growth, the infrastructure of decarbonisation and rising living standards are all expected to drive demand for energy, metals and fertilisers for decades to come.
I like the look of the BHP expansion into potash, which is a lower-emissions fertiliser. It’s seemingly good for the planet and also for BHP’s profit because it’s expecting to be able to achieve a very high EBITDA margin.
Time will tell what happens with commodities and the BHP share price.
