BHP has revealed a record $34 billion profit in FY22. 

BHP has put up some massive numbers according to its report for the 2022 financial year, including a record $US36 billion ($51.2 billion) in returns to shareholders.

The global mining giant says its underlying attributable profit had risen more than 40 per cent to $US23.8 billion ($33.89 billion) for the year to June 30.

“These strong results were due to safe and reliable operations, project delivery and capital discipline, which allowed us to capture the value of strong commodity prices,” BHP chief executive Mike Henry said.

“BHP remains the lowest-cost iron ore producer globally, and we delivered record annual sales from Western Australia.”

Shareholders will receive a final dividend of $US1.75 a share, bringing full-year dividends to $US3.25 a share.

The report details an attributable profit of $US30.9 billion ($44 billion), net operating cash flow of $US29.3 billion ($1.73 billion) and record free cash flow of $US24.3 billion ($34.61 billion) for continuing operations.

“BHP enters the 2023 financial year in great shape strategically, operationally and financially, and well prepared to manage an uncertain near-term environment,” Mr Henry said.

But the boss says geopolitical factors will continue to impact the company in the near future.

“We expect China to emerge as a source of stability for commodity demand in the year ahead with policy support progressively taking hold,” he said.

“At the same time, we expect to see a slowdown in advanced economies as monetary policy tightens as well as ongoing geopolitical uncertainty and inflationary pressures.

“The direct and indirect impacts of Europe’s energy crisis are a particular point of concern.

“Tight labour markets will remain a challenge for global and local supply chains. Waves of COVID-19 infection continue to occur in the communities where we operate, and we are planning accordingly.”

BHP said much of the FY22 profit increase came from higher coal and copper prices and a strong underlying operational performance, including record sales at its Western Australia iron ore operations (WAIO) and near record concentrator throughput at its Escondida copper mine in Chile.

Some insiders believe the strong results will spur BHP to raise its recently-rejected $8.4 billion bid for OZ Minerals from its initial $25-per-share offer.