BHP Group Limited is an ASX-listed mineral explorer with a market capitalisation of AU$293.95 billion. The company is primarily engaged in iron ore mining and oil exploration along with the production of other commodities like copper, uranium, and petroleum.

BHP is also a dual-listed company having two parent companies, namely- BHP Billiton Limited and BHP Billiton Plc. They employ about 60,000 employees and contractors across several parts of Australia and the Americas. BHP’s headquarter is located in Melbourne.

The company recently paid a fully franked interim dividend worth AU$2.08 per share to its eligible shareholders in March 2022. 

Recent developments within BHP:

Divestment of BHP’s interest in BMC:

On 3 May 2022, BHP announced that it had completed selling 80% interest in BHP Mitsui Coal (BMC) to Stanmore SMC Holdings Pty Ltd. Stanmore SMC is a 100%-owned entity of Stanmore Resources Limited (ASX:SMR).   

Stanmore paid US$1.1 billion as cash consideration at the completion of the deal, along with a preliminary completion adjustment of US$200 million for working capital. Additionally, Stanmore is yet to pay another US$100 million of cash to BHP within six months, on 3 May 2022. Furthermore, Stanmore is also payable US$150 million to BHP as a price-linked earnout in CY2024. As a result, the total cash consideration of the deal is US$1.35 billion, along with the final completion adjustment amount.

BHP’s operational updates at the end of 31 March 2022 (Q3 FY22):

On 24 April 2022, BHP shared its operational performance updates for Q3 FY22 by stating that the company delivered a safe and reliable production amidst all the COVID-19 related challenges. 

As a result, the company decided to keep its production guidance for FY22 unchanged for iron ore, metallurgical coal and energy coal. However, BHP has lowered its total full-year production guidance between 1,570 and 1,620 kt due to lowered production guidance as Escondida. 

Similarly, the company has also lowered the full-year nickel production guidance between 80 and 85kt due to labour shortages during the COVID-19 crisis. 

BHP also shared that the company is expecting its merger of BHP’s oil and gas portfolio with Woodside Petroleum Limited (ASX:WPL) to take place on 1 June 2022. However, the merger is subjected to the satisfaction of preceding conditions and approval from Woodside shareholders. 

BHP’s financial performance in H1 FY22: 

BHP reported a 32% gain in revenue to US$33,780 million along with revenue from continued as well as discontinued operations. Meanwhile, BHP’s net profit after tax also went up by 144% in the given period to US$9,443 million. 

BHP share price movement: 

The shares of BHP Group Limited (ASX:BHP) were spotted trading 0.611% higher at AU$47.69 per share at 2:24 PM AEST on the ASX today (5 May). Approximately 4.05 million shares of BHP were traded until now during today’s trading session on the ASX. 

The share price of BHP has approximately fallen by 2% on the ASX over the past 12 months. On the other hand, BHP’s year-to-date share price gained over 12% at 2:24 PM AEST on the ASX today (5 May).