China’s strong demand for iron ore helped BHP grow underlying net earnings for the first half of fiscal as global equity markets rebounded overnight in hopes that the impending U.S. coronavirus relief and the Introducing COVID-19 vaccines could contain the pandemic

BHP’s net income declined a fifth, from $ 4 billion a year ago to nearly $ 3.0 billion ($ 5 billion)) for the six months ended December after $ 2.2 billion one-time write-offs primarily from the New South Wales coal mines, the partially owned Cerrejon open pit in Colombia, and tax losses
However, record iron ore production in Western Australia and copper recovery from the Escondida mine in Chile coupled with higher prices for both commodities resulted in a net profit before depreciation rose 16 percent to $ 6 Dollars) 76 billion) for the six months ended December from USD 519 billion at the same time in 2019

Investors will receive a record interim dividend of $ 1,001 a share, up from $ 065 for the same period last year when BHP’s share price rose 2.7 percent to $ 47 per share

China’s economy has recovered from the shutdown caused by the coronavirus pandemic a year ago, and the global mining giant was expecting strong demand from China to continue into 2021, as well as a recovery in the rest of global crude steel production

BHP CEO Mike Henry said the company had strong results in the first half of fiscal 2021

“Our continued delivery of reliable operational performance during the half helped record production at Western Ore Iron Ore and record concentrator throughput at Escondida,” he said

“Our outlook for global economic growth and raw material demand remains positive The political decision-makers in key economies signal a permanent commitment to growth and signal ambitions to combat climate change “

He said while “generally positive” about the outlook, he was concerned about the impact of trade tensions and COVID-19, but was hoping for the vaccine to roll out

Mr Henry told journalists on a conference call that the diplomatic battle between Australia and China was affecting revenues in the local coal mines

The BHP chief said the miner’s relationship with Chinese customers had remained “very positive,” but the company assumed the ban on Australian coal imports into Chinese ports would continue for some time

The great miner seeks to sell his coal mines in New South Wales’ Hunter Valley and Queensland, as well as his stake in the Cerrejon mine, which has been riddled with allegations of pollution and human rights abuses

UBS mining analysts said that while BHP’s half-year after-tax profit was below expectations, investors liked the record interim dividend

“While NPAT has been a failure for UBS (estimates) and consensus, the higher dividend is positive and dividend projections could be reversed if BHP continues to return 100 percent of FCF (free cash flow),” they write in a note

Iron ore miner Fortescue Metals Group told the Australian Stock Exchange this afternoon that Chief Operating Officer Greg Lilleyman has resigned with immediate effect because of the high cost of the $ 2 billion iron ore miner’s 6 billion iron bridge project, a joint Venture with Taiwan’s Formosa Steel and Chinese steel maker Baosteel

The two top executives responsible for the project, Don Hyma and Manie McDonald, have also resigned

The project in the Pilbara region of Western Australia is a magnetite iron ore mine which is more expensive to produce than hematite iron ore, which can be excavated and exported directly without further production

General Manager Elizabeth Gaines and Chief Financial Officer Ian Wells will be waiving their rewards for the fiscal year based on the failures identified during a review of the project

“What we have learned so far from our review of the Iron Bridge Project is that we have lost sight of that critical focus,” Ms. Gaines said in a statement

“As CEO, I also have to take responsibility and learn from it. Both Ian Wells, CFO, and I will forego all incentive payments this financial year,” said the FMG boss

“I would like to thank Greg Lilleyman for his tremendous contribution since joining Fortescue in January 2017,” she told the ASX

“The success of our integrated marketing and operations strategy is a lasting legacy of Greg’s strategic direction and commitment to our success over this period”

Ms. Gaines said the “detailed” review of the iron bridge is underway and the market will be updated on Thursday when the half-yearly earnings results are released

National Australia Bank announced that its results for the first quarter of the financial year have changed little

First quarter unaudited cash earnings were $ 1.6 billion, up 1 percent over the same period last year

However, the profit margin between the interest paid by the bank and the interest income decreased in the quarter due to the record low interest rates

According to NAB, the majority of customers who put their loans on hold due to the coronavirus pandemic have resumed repayments The value of the deferred loans was 2 billion Compared to a high of 38 billion USD

The bank said most customers who drop out of the deferment (around 90 percent of the value of the loan) have resumed repayments, “but a small cohort needs further assistance”

NAB shares rose 11 percent at $ 2556 ANZ (1 unit) and Westpac (0 units) 5pc) also rose, surpassing a declining CBA (-0) 5pc)

The federal court ruled that the Commonwealth Bank business customers more than 12 in a case that emerges from the Royal Banking CommissionHas been misled 000 times about overdraft account interest rates

The court found that the CBA charged an interest rate on overdrafts significantly higher than what its clients had recommended in a corporate watchdog case, the Australian Securities and Investments Commission

It was found that bank 12Has broken ASIC law 119 times by engaging in misleading or misleading behavior, which constitutes a criminal offense

The court also ruled that in violation of the Corporations Act, the CBA had violated its general obligation as a financial services licensee to comply with financial services laws.

The bank admitted that it had advised customers that they would be charged 16 percent interest on their overdrafts, even though some were charged 34 percent due to a system failure

ASIC Commissioner Sean Hughes said financial institutions need to prioritize updating their information technology systems “to ensure they deliver on promises made to their customers”

“Because CBA did not take reasonable steps to correct this error once it was identified, it resulted in continued customer overload,” said Hughes

Ansell shares hit their highest level since November 2020 after half-year earnings rose due to demand for personal protective equipment (PPE) such as rubber gloves due to the coronavirus pandemic

The company announced that sales increased by almost a quarter in the last half of 2020 thanks to increased demand

Ansell expects the strong demand for PPE to continue next year, and also sees increased demand for many other products

The stake in metals and electronics recycler Sims Metals Management rose 74 percent to $ 1375 after the half year, profits rose due to higher prices and lower costs, which resulted in better profit margins despite a decline in sales

Net income for the six months ended December rose from a loss of $ 91 million a year ago to $ 53 million

Real estate sales firm Domain said its half-year earnings were flat, increasing only 1.2 percent to nearly $ 20 million

Higher prices for iron ore, oil and copper, good earnings results and a record interim dividend for the big miner BHP drove the market

The ASX 200 index rose 07 percent to 6917, led by oil stocks and miners, while the broader All Ordinaries Index rose 40 points to 7189 rose

Plumbing company GWA Group (-81pc) led the losses in the benchmark index after reporting lower sales in the half-year

Income after tax decreased from $ 236 million to $ 185 million for the six months ended December

In the RBA policy minutes earlier this month, the board said “very significant” financial assistance was needed for some time and the official cash rate would be kept at a record low of 0.1 percent for as long as needed

The central bank said its consultation with businesses indicated that it would take some time for the wage freezes to end in both the private and public sectors

It was also reiterated that, given record low interest rates, there is little evidence of “deterioration” in lending standards amid booming property prices

The Australian dollar rose a quarter percent to over 78 US cents

Oil has rallied along with the stock markets, hitting its highest level since January 2020 in hopes that the US economy would stimulate the economy aligned Houthi rebels

West Texas crude oil broke above $ 60 a barrel for the first time since the start of the year when Texas shale oil producers shut down due to power outages

Brent crude rose 13 percent to $ 6325 a barrel overnight. At 4:50 p.m. AEDT it was up slightly to $ 6344 a barrel

As investors moved to riskier assets, gold fell in safe havens overnight but has continued today with purchases of precious metals valued at $ 1821 USD increased again11 an ounce, down 01 percent

According to the Transportation Security Administration, more than four million people passed security checks at the airport between Thursday and Sunday

Global stocks rose for the eleventh straight day on optimism about coronavirus vaccine rollout and new US stimulus, while tensions in the Middle East drove oil to a 13-month high

European stocks rebounded overnight on higher oil and copper prices to their highest level in almost a year for the Europe-wide STOXX 600, which gained 1.3 percent

In London, the FTSE 100 rose 25 percent to 6756, sponsored by great miners like Rio Tinto (42pc), BHP (52pc) and Anglo American (49pc) and oil giant BP, who jumped 65 percent

In Germany, the DAX rose by 04 to 14110 and the CA 40 in France rose 15 percent to 5786

Later in the week, all eyes will be on the release of minutes from the January meeting of the US Federal Reserve where policy makers decided to leave interest rates unchanged for clues as to the likely direction of monetary policy received

Investors are also looking to next week’s earnings results from hotels, cruise lines, and other companies hit hard by COVID-19 for clues as to which companies could be the first to return if the pandemic recedes

Production data for this month will be released later this week in the US and other major economies

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BHP dividend 2021

Weltnachrichten – AU – BHP pays record dividend despite lower profit, FMG executives resign due to loss of costs

Source: https://www.abc.net.au/news/2021-02-16/share-market-wall-st-dow-jones-asx-aud-wrap/13158194