BHP posts lower profits, warns of China trade risk

20 February, 2019 12:00 AM printer

SYDNEY: Anglo-Australian mining giant BHP on Tuesday (Feb 19) reported a lower-than-expected US$3.73 billion half-yearly profit, as it warned of a softening Chinese market and growing trade rows.

The underlying profit for the six months to Dec 31 was eight percent lower than the US$4.05 billion recorded in the previous corresponding period, missing market expectations after a series of operational problems at its mines, report agencies.

"It's a soft result," Fat Prophets resources analyst David Lennox told AFP of the first-half result, adding that a pullback in commodity prices was also a factor. BHP chief executive Andrew Mackenzie said a "strong second half is expected to partially offset the impacts from operational outages in the first half".