Australian earnings preview BHP
Share this:
Full Year Earnings Preview:
Mining and metals giant BHP Group Ltd (BHP) is a diversified natural resources company that sits among the world’s top producers of major commodities, including iron ore, metallurgical coal, and copper. BHP also has substantial interests in oil, gas, and energy coal.
A multinational and dual-listed company, BHP is headquartered in Melbourne, Australia, and is one of the largest listed companies on the ASX. BHP is due to report its full-year numbers on the 18th of August at 8.30 am AEST.
Despite the crippling impact of the coronavirus to global industries, BHP has benefitted from strong demand for iron ore from China following the government’s sizeable post-COVID-19 stimulus measures and supply disruptions in Brazil.
BHP's flagship Australian iron ore division shipped 77.04 million tons of iron ore, smashing its previous years export numbers in the three months to June 30. This sets the mining giant up for strong full-year underlying earnings of close to $U.S9.5 billion.
BHP’s full-year earnings are expected to remain broadly flat at around U.S$42.5bn in FY 20. Earnings per share are expected to be around 270 cents per share and BHP is estimated to pay a fully franked ~4.5% dividend.
Technically, BHP has overhead trendline resistance coming in at ~$40.50 drawn from the $42.33 high from July 2019. On the downside, dips have found good buying interest $36.50/$34.50 area. Given the strong reflation thematic currently running through markets, should the BHP price dip into the aforementioned band of support zone it would offer a buying opportunity.
Source Tradingview. The figures stated areas of the 7th of August 2020. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
ASX 200 Rebound Stalls Despite Wall Street Surge
The ASX 200 rebound is struggling for traction despite a powerful Wall Street rally, leaving 8800 resistance and downside risks in focus.
ASX 200 Rebounds, But Resistance Looms
The ASX 200 has rebounded from the July low, but resistance around 8800 and 8875 could test the recovery.
ASX 200 Slides as Oil, Yields and Rate Risks Hit Sentiment
The ASX 200 suffered its worst week in six months as surging oil, higher bond yields and renewed rate-hike bets drove a broad risk-off move.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.