BHP profits slip as miner looks to offload more coal assets

BHP said it would widen plans to exit coal operations and look to offload older oil and gas assets as it reported a drop in full year profits.

The mining giant said it planned to sell, or spinoff, its 80% share in the BHP Mitsui Coal joint venture, which owns two coking coal operations in Australia, along with exiting thermal coal mines and some oil and gas operations.

Full year profits fell 4% to $9.1bn, as higher iron ore prices offset the impact of the coronavirus impact, but below analysts expectations.

The company also warned that it expected most major world economies except China to feel the brunt of downturn this year in the face of potential further outbreaks.

"With the exception of China, the world's major economies will contract during the 2020 calendar year as a result of the COVID-19 pandemic," said chief executive Mike Henry.

“We will seek to divest oil and gas assets that are mature or which are likely to realize greater value under different ownership."