BHP Announce Results for the year ended 30 June 2020
Attributable profit of US$8.0 billion includes an exceptional loss of US$1.1 billion (2019: US$8.3 billion, which
includes a US$818 million exceptional loss).
The 2020 financial year exceptional loss is related to the impairment of Cerro Colorado, a provision for cancellation of power contracts as part of a shift towards 100 per cent renewable energy at Escondida and Spence, COVID-19 related costs and the current year impact of the Samarco dam failure.
Underlying attributable profit of US$9.1 billion (2019: US$9.1 billion).
Profit from operations of US$14.4 billion (2019: US$16.1 billion) decreased as a result of lower prices, lower volumes
(including copper grade and petroleum field declines), increased deferred stripping depletion at Escondida and an increase in the closure and rehabilitation provision for closed mines. This was partially offset by the favourable impacts of exchange rate movements, better productivity, including record production at WAIO, Caval Ridge and Poitrel; record coal mined at Broadmeadow and record average concentrator throughput at Escondida, lower unit costs at our major assets and improved operating stability.
The total impact from COVID-19 on our operations was US$348 million (pre-tax), including an exceptional charge of US$183 million, in the 2020 financial year. This represents the following impacts: lower volumes at our operated assets of US$112 million; temporary shutdowns at our non-operated equity accounted investments (Antamina and Cerrejón) of US$53 million; and additional costs incurred at our operated assets such as temporary relocation costs,screening and hygiene of US$183 million (exceptional item).
Underlying EBITDA of US$22.1 billion (2019: US$23.2 billion), with lower prices, lower volumes (including copper grade and petroleum field declines), inflation, an increase in the closure and rehabilitation provision for closed mines and other net movements, partially offset by record volumes at a number of our assets, improved operating stability, and favourable impacts from exchange rate movements and the application of IFRS 16 Leases.
Underlying EBITDA margin of 53 per cent (2019: 53 per cent).
Underlying return on capital employed at 17 per cent (2019: 18 per cent excluding Onshore US)