*

FY25 profit $10.16 bln misses estimates

*

FY dividend of $1.10/share lowest since 2017 but better

than

expected

*

Demand for commodities resilient despite tariff

uncertainty, BHP

says

(Updates with details on debt target and capital spend

throughout)

Aug 19 (Reuters) - BHP Group ( BHP ) on Tuesday

reported its smallest annual underlying profit in five years and

its lowest dividend in eight years, hiked its debt target, and

flagged a cut in capital and exploration spending towards the

end of the decade.

The world's largest listed miner reported an underlying

attributable profit of $10.16 billion for the year ended June

30, down 26% from last year and below the Visible Alpha

consensus of $10.22 billion.

This was the miner's weakest performance since 2020.

It announced a final dividend of $0.60 per share, down from

$0.74 a year earlier. The full-year dividend payout of $1.10

beat the Visible Alpha consensus of $1.01 apiece, but was its

lowest payout since 2017.

Additional supplies from Australia, Brazil and South Africa,

alongside lower steel production in top consumer China,

pressured iron ore prices for much of the financial year,

affecting earnings for top miners including BHP and Rio Tinto

.

BHP's average realised price for its iron ore fell by

19% during the year, though that was partly offset by stronger

prices for copper, its second-biggest profit driver.

Still, the miner expects demand for its commodities to

remain resilient even as the global economy faces an uncertain

environment due to "shifting trade policies".

"Policy uncertainty, particularly around tariffs, fiscal

policy, monetary easing, and industrial policy, has been

elevated and continues to influence investment and trade flows.

Despite these dynamics, commodity demand remained resilient,"

Chief Executive Mike Henry said in a statement.

In a sign of its confidence, BHP raised its net debt

target range to between $10 billion and $20 billion, from

between $5 billion and $15 billion, citing a healthy balance

sheet and investment in high-quality growth projects.

"We remain confident in the long-term fundamentals of

steelmaking materials, copper and fertilisers, which are

critical to global growth, urbanisation and the energy

transition," Henry said.

The company said it plans to spend $11 billion on growth

projects and exploration over the next two years, up from $9.79

billion in fiscal 2025. However, it said that spending will slow

down to an average $10 billion each year between 2028 and 2030.

In July, the mining giant flagged a delay and a cost

overrun of up to $1.7 billion at its key Jansen potash project

in Canada, and also exited its interest in the $942 million

Kabanga nickel project in Tanzania.

On Tuesday, it said it had agreed to sell copper assets in

Brazil for up to $465 million.