Updated February 20, 2018 17:44:09

Photo: BHP's net profit for the second half of last year was down 37pc on the year before. (Supplied: BHP)

The world's biggest miner says US corporate tax cuts have taken a big chunk out of its bottom line.

BHP made an after-tax profit of $US2.01 billion ($2.53 billion) for the six months to the end of December.

That's down 37 per cent from a $US3.2 billion ($4.03 billion) net profit for the same time in 2016, after a loss of $US2 billion mainly because of the reduction in company tax rates in the US.

Despite the fall in profit, the world's biggest miner is the latest resources firm to return cash to investors.

It announced a 38 per cent rise in dividends for the half year to $US0.55 a share fully franked, up from last year's interim dividend of $US0.40 a share fully franked.

Stronger commodity prices saw underlying profit rise by one quarter to nearly $US4.1 billion, but that figure was less than expected by analysts.

UBS analysts predicted BHP would post an underlying profit for the first half of 2018 of $US4.66 billion, with market consensus from analysts surveyed by Thomson Reuters at $US4.30 billion.

BHP boss Andrew Mackenzie said it was a good result.

"Higher commodity prices and a solid operating performance delivered free cash flow of $US4.9 billion," Mr Mackenzie said in a statement.

"We used this cash to further reduce net debt and increase returns to shareholders through higher dividends.

"Our capital expenditure program remains focused on high-return, low-risk development opportunities in commodities where we see greatest potential."

BHP is still being stalked by activist US hedge fund Elliott, with pressure growing on the world's biggest miner to create a unified structure with the company headquartered and incorporated in Australia, and drop its stock market listing in London.

Topics: company-news, coal, copper, iron-ore, oil-and-gas, mining-industry, stockmarket, australia

First posted February 20, 2018 17:36:42