BHP Group Ltd shares headed lower on Tuesday after the miner unveiled a slump in profit and cut its dividend on the back of weak iron ore prices.
Underlying attributable profit sank 23% to US$5.1 billion (£4.0 billion) in the six months to December 31 on an 8% drop in revenue to US$25.2 billion, BHP reported on Tuesday.
Though operating earnings from its copper division jumped 44% to US$5.0 billion, lower iron ore prices and weaker Chinese demand offset the increase.
Iron ore earnings tumbled 26% to US$7.2 billion, as average realised prices dropped 22% to US$81.1 a tonne.
Weaker demand from China and developed Asian countries was said to have weighed, with BHP noting a “plateau phase” was expected to remain in the near term.
A US$0.50 per share dividend was declared, marking BHP’s lowest in eight years and a US$0.22 drop against the first half of 2024.
Shares fell 0.7% to 2,073p on Monday.