Why BHP Group Stock Fell 15% in August
Shares of giant international miner BHP Group (NYSE: BHP) fell by 15% in August, according to data from S&P Global Market Intelligence. The bulk of that drop came largely around the time that it delivered its fiscal 2021 earnings update. The rumor mill actually started heating up a few days before the release, leading BHP to make a public comment, with more details provided when it announced its financial results. All the hoopla appears to be about the company's energy business.
Although BHP's biggest businesses involve mining for commodities like iron ore, coal, and copper, it also has a division dedicated to extracting crude oil and natural gas. With nations around the world pushing to reduce carbon emissions, drilling for these still-vital fuels has come under more intense regulatory scrutiny. The pandemic shutdowns in 2020, meanwhile, led to steep price declines in the energy space, highlighting the volatility of the sector and the long-term risks if these fuels should fall out of favor.
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Source Fool.com
