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BHP maintains guidance but wary over coronavirus

Last updated: 03:26 18 Feb 2020 EST, First published: 02:37 18 Feb 2020 EST

BHP Group PLC - BHP yet to cut guidance over coronavirus
China currently is the world’s largest buyer of commodities

BHP PLC (LON:BHP) expects to cut full-year guidance if the coronavirus outbreak is not “demonstrably” contained by March.

Global steel production is expected to increase “modestly” in 2020, the commodities giant said, with slower Chinese growth offset by improvement elsewhere.

READ: Mining shares fall as coronavirus crisis highlights global dependency on China trade

Chief executive Mike Henry said the FTSE 100-listed company remains confident about the “positive underlying fundamentals” of its commodities.

“Despite near term uncertainty - due to the coronavirus outbreak, trade policy and geopolitics… We see enormous potential to reliably deliver exceptional financial and operational performance, and to grow value and returns,” he said.

In the six months to 31 December, revenue rose 7% to US$22bn for profit before tax 13% higher at US$7.7bn. Cash at the end of the period was 5% lower at US$14bn.

Analysts at Shore Capital said the results were "slightly" ahead of their expectations and "significantly" ahead of consensus.

Shares dipped 2% to 1,663.4p on Tuesday's early trades.

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