In a successful year of transformation, BHP safely and sustainably achieved record underlying earnings, made record tax and royalty payments and distributed a record amount to shareholders.
BHP performed well in FY2022 with strong production outcomes and solid cost control. We paid record taxes and royalties during the year of US$17.3 billion and cash returns to shareholders of US$16.4 billion. And most importantly, we did so safely and sustainably.
2022 at a glance
Find out more about our 2022 results and performance.-
Financial Results
-
Our business model
-
Positioning for the future
-
People
-
Downloads
FY2022 financial results
BHP delivered strong financial results in FY2022 against a backdrop of increasing economic volatility, inflationary impacts and supply chain pressures.
Excluding Petroleum, underlying EBITDA in FY2022 was up 16 per cent to US$40.6 billion at a record margin of 65 per cent. Underlying attributable profit increased to US$21.3 billion.
The total shareholder dividend for FY2022 was 325 US cents, an annual cash return of a record US$16.4 billion to shareholders and representing a 77 per cent payout ratio. We also distributed a further US$19.6 billion as an in specie dividend through the merger of our Petroleum business with Woodside.
Our total direct economic contribution was US$78.1 billion. This included payments to suppliers, wages and benefits for around 80,000 employees and contractors, dividends, taxes, royalties and voluntary investment in social projects across the communities where we operate.
In FY2022, our tax, royalty and other payments to governments totalled a record US$17.3 billion. Of this, 77.5 per cent or US$13.4 billion was paid in Australia. During the last decade, we paid US$90.5 billion globally in taxes, royalties and other payments, including US$70 billion (approximately A$90.1 billion) in Australia.
BHP’s global adjusted effective tax rate in FY2022 was 32.1 per cent, broadly in line with our average adjusted effective tax rate over the past decade of 33.3 per cent. Once royalties are included, our FY2022 rate increases to 38.9 per cent.
Our business model
By prioritising both financial and social value, we deliver long-term value and resilience for our shareholders and all our stakeholders.
How we create and grow value
We produce some of the essential resources needed to support global megatrends, such as decarbonisation, and we strive to produce them sustainably, efficiently and ethically.
We seek to create value with the communities where we operate and for our shareholders.
Our portfolio
We are reshaping our portfolio to focus on higher-quality iron ore and metallurgical coal preferred by our steelmaking customers, copper for electrification and renewable energy, nickel for electric vehicles and potash to make food production and land use more efficient and sustainable.
Social value
Social value is BHP’s positive contribution to society – our people, partners, the economy, the environment and local communities. It is about creating enduring, mutual benefit for BHP, our shareholders and the broader community.
Doing this well is essential to better business outcomes and long-term shareholder value, and will create a competitive advantage.
Exceptional performance
We seek to continuously improve performance by empowering our people through the BHP Operating System (BOS) principles, practices and tools.
BOS is, at its heart, a people program. It is designed to provide a way of working that creates a culture at BHP where we make continuous improvement central to everyone’s role.
Positioning for the future
In FY2022, we took steps to create a simpler, more agile and efficient BHP, better able to capitalise on the megatrends shaping our world.
This included creating a simpler corporate structure, merging Petroleum with Woodside, consolidating our coal portfolio and investing in a new commodity – potash.
Unlocking growth potential at our assets
The large endowments we have under our control are becoming increasingly valuable as the resources industry finds high-quality, Tier 1 (large, low-cost and long-life) resources harder to access, deeper, of lower grade, or in countries with more challenging operating conditions.
We hold the largest copper endowment in the world, the second largest nickel sulphide endowment and are one of the world’s largest iron ore producers and expect to increase production over the medium term.
Growth through exploration, focused on copper and nickel
Despite the slowdown and restrictions on movement due to the COVID-19 pandemic, in FY2022 our field teams pursued copper opportunities in Chile, Colombia, Peru, Ecuador, the United States and Australia. This involved early-stage reconnaissance work through target definition and drill testing.
Our resource assessment exploration expenditure increased by 30 per cent in FY2022 to US$179 million, while our greenfield expenditure increased by 43 per cent to US$77 million.
Health and safety
Our highest priority is the safety of our workforce and the communities where we operate.
We achieved a third consecutive year without a fatality and have seen a sustained improvement in the high-potential injury frequency rate which fell by 30 per cent in FY2022.
We are committed to protecting the health and wellbeing of our workforce. Over the past five years, we have achieved a 68 per cent reduction in the total number of workers exposed to our most material occupational exposures.
Inclusion and diversity
We continue to build a more inclusive and diverse workforce that further enhances our performance and better reflects the communities where we operate
Gender balance
We remain on track to achieve our aspirational goal for a gender-balanced employee workforce globally by FY2025.
Indigenous employment
We made progress during FY2022 against targets for increased Indigenous employment in our Minerals Australia operations, Minerals Americas operations in Chile and our Jansen Potash Project in Canada.
-
LGBT+ inclusion at BHPFor many LGBT+ people, discrimination and the pressure to conceal sexual orientation or gender identity at work can have a major impact on mental health.
At BHP, we encourage everyone to bring their whole selves to work. We know diverse and inclusive teams are safer, more productive and have a better culture, and we want to be the workplace of choice for people of all backgrounds and experiences.
Each member of our workforce is encouraged to speak up and become a trusted advisor. A number of employee reference groups also inform our decision-making, advise on policy and advocate for cultural change. These groups include global and regional Inclusion and Diversity Committees and Jasper, our LGBT+ ally inclusion group.
First established in 2017, Jasper has more than 1,600 members and eight local chapters across Australia, South America, Asia the United States and Canada. Their aim is to drive a safe and inclusive work environment at BHP by providing advice on ways to reduce bias and ensure LGBT+ people are respected and valued regardless of their sexual or gender identity.
In FY2021, Jasper’s ‘Bring your whole self to work’ campaign advocated for visibility and inclusion of LGBT+ employees and contractors and underlined the importance of respectful behaviours. The campaign received the Health Excellence Award at our 2021 Health, Safety, Environment and Community (HSEC) Awards.
We were also awarded silver-tier employer status at the 2021 Australian LGBTQ Inclusion Awards, which are based on the results of the Australian Workplace Equality Index (AWEI), a rigorous and evidence-based annual benchmarking assessment of the progress and impact of LGBTQ inclusion initiatives in Australian workplaces. The award is a reflection of our global efforts to improve LGBT+ inclusion through education and awareness initiatives and new policies such as our Gender Affirmation Policy, which launched in 2020.
Throughout FY2021 and despite the challenges of COVID-19, Jasper continued to provide a connection to the LGBT+ community through peer support and networking. The group also hosted education and awareness sessions, reverse mentoring and initiatives for senior executives, line leaders, supervisors, employees and other allies to actively show their support.
More information is available at bhp.com/lgbt or watch our video.
2022 Reports
- BHP Annual Report 2022 pdf 9241549
- BHP Annual Report 2022 (ESEF/iXBRL with built-in iXBRL viewer) xhtml 40154266
- BHP Annual Report 2022 (ESEF/iXBRL) zip 24765469
- BHP Letter from the Remuneration Committee Chair 2022 pdf 31975
- BHP Economic Contribution Report 2022 pdf 5118370
- BHP Economic Contribution Report 2022 XML xml 72432
- BHP Modern Slavery Statement 2022 pdf 6760135
- BHP ESG Standards and Databook 2022 xlsx 10641635
- BHP Scope 1, 2 and 3 GHG Emissions Calculation Methodology 2022 pdf 385823
- Sustainability reporting organisational boundary and disclaimers pdf 97477
2022 case studies
- Changing the way we recruit at Escondida
- Creating employment outcomes for the Tjiwarl people
- First carbon neutral copper cathode delivery
- Harnessing data to improve light vehicles and surface mobile equipment safety onsite
- Improving childcare in the Pilbara
- Keeping our people and communities COVID safe
- Managing occupational exposures through real-time monitoring
- Mitigating concerns through community collaboration
- Monitoring the endangered Pilbara Olive Python
- Motivating our communities to vaccinate together
- New early start night shift improves productivity
- New regional safety standard for light vehicles in Chile
- Nickel West takes big steps on pathway to net zero
- Responding to the potential physical impacts of climate change
- Start-up alliance supports local tech entrepreneurs
- Transforming Indigenous healthcare in the Pilbara
- Transgender and gender diverse recruitment drive delivers results
2021 case studies
- Chilean sumate - Open call for innovative environmental solutions
- Coastal impacts - Talking about climate adaptation in Louisiana
- Covid-19 - Supporting our people and communities through COVID-19
- Escondida lubricant change - Escondida lubricant change
- FutureFit Academy - Preparing for a career in mining
- Innawally pool clean - Protecting water resources and biodiversity at Innawally Pool
- Jasper - LGBT+ inclusion at BHP
- Maritime emissions - Championing sustainability in the maritime supply chain
- MBA Consortium - Road renovation in Chile to deliver safety and employment opportunities
- Meaningful water targets - Improving global water targets
- Reducing TSF failure risks and impacts
- Operational decarbonisation - pathways to net zero
- Pilbara safety dash maintainer - Technology tool improves safety for maintenance crews
- Raine Island - Saving endangered green turtles on the Great Barrier Reef
- Vital Resources Fund - Supporting our regional communities during COVID-19
Sustainability Reporting 2022
We recognise sustainability is integral to the work we do at BHP, and have continued our refreshed approach to reporting in FY2022.
Annual Report 2022
Download and read our 2022 Annual Report.