On the back of strong broad-based price tailwinds, BHP Group reported healthy H1 operating results, which also resulted in attractive shareholder rewards. However, there was (some) sequential moderation and, given the brewing market dynamics, i.e. risk of pricing correction/volatility and cost challenges, margins are set to normalise in the medium term. While the firm has a strong balance sheet, it is not being used optimally to diversify as a preparation for looming normalisation risks.
15 Feb 2022
Impressive results and dividends, but be prepared for reversing euphoria
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Impressive results and dividends, but be prepared for reversing euphoria
BHP Group Ltd (BHP:LON) | 2,330 -442.6 (-0.8%) | Mkt Cap: 118,076m
- Published:
15 Feb 2022 -
Author:
Varun Sikka -
Pages:
4
On the back of strong broad-based price tailwinds, BHP Group reported healthy H1 operating results, which also resulted in attractive shareholder rewards. However, there was (some) sequential moderation and, given the brewing market dynamics, i.e. risk of pricing correction/volatility and cost challenges, margins are set to normalise in the medium term. While the firm has a strong balance sheet, it is not being used optimally to diversify as a preparation for looming normalisation risks.