In a year that has seen COVID-19 continue to challenge the lives and livelihoods of so many, I am proud of the resilience and commitment our people have demonstrated to deliver an outstanding set of results in FY2021.
This has been a very good year for BHP. We have taken action to shape BHP’s future, while delivering very strong operational and financial results. The combination of a clear strategic outlook, increasing operational excellence and greater exposure to future facing commodities is expected to enable us to deliver positive returns and grow more value for all of our stakeholders in the years ahead.
FY2021 financial results
BHP delivered excellent financial results in FY2021, supported by strong operational performance, disciplined capital investment and our Marketing team’s ability to negotiate competitive commercial terms for our products.
Our operational performance, when combined with higher iron ore and copper prices, drove underlying EBITDA up 69 per cent to US$37.4 billion – at a margin of 64 per cent. Underlying attributable profit increased by 88 per cent to US$17.1 billion.
The total shareholder dividend for FY2021 was a record 301 US cents per share. This represents an 89 per cent payout ratio.
Our total direct economic contribution for FY2021 was US$40.9 billion. This includes payments to suppliers, wages and benefits for our 80,000 employees and contractors, dividends, taxes and royalties, and voluntary investment in social projects across the communities where we operate.
In FY2021, our tax, royalty and other payments to governments totalled US$11.1 billion. Of this, 84.7 per cent or US$9.4 billion was paid in Australia. Our global adjusted effective tax rate in FY2021 was 34.1 per cent, which is broadly in line with our average adjusted effective tax rate over the past decade of 33.4 per cent.
Once royalties are included, our FY2021 rate increases to 40.7 per cent.
We have continued to apply the Capital Allocation Framework to direct cash where it can generate the best returns. Over the year, Underlying Return on Capital Employed strengthened to 32.5 per cent.
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