Bhp Share Discussion Threads

[waldron] 27/5/2022 06:13

BHP has the edge over Rio Tinto as an investment opportunity as the market focus tilts toward growth, said UBS analyst Lachlan Shaw.

"We prefer BHP on operational performance and portfolio/growth optionality. BHP has an unparalleled copper equity resource position and significant nickel optionality."

Still, UBS is neutral-rated on both stocks. While elevated commodity prices continue to drive strong earnings for both miners in the short term, UBS is cautious around the price of iron ore in the medium to long term. Most of BHP and Rio Tinto's profit comes from iron-ore sales.

[loganair] 26/5/2022 12:09

By getting rid of their petroleum side, leave BHP able to concentrate on the metals, especially the highly profitable Copper and Nickel needed for the so called green revolution.

[eggbaconandbubble] 26/5/2022 12:06

Yes, thanks for that. They have defo done the best thing getting shot of it.

[garycook] 26/5/2022 11:06

anhar,Nice one.Thank you.

[anhar] 26/5/2022 09:59

From the annual accounts to 30 June 21, petroleum contributed $433m or 1.4% to a group total of 30,291m earnings before exceptional items, interest and tax. As mentioned above, petroleum turnover was $3,946m so its profit margin in that year was 11.0%.

For the group, earnings on the same basis were 30,291m for an average margin of 49.8% on turnover of 60,817m. So the margin on petroleum was very substantially lower than the average for the group in that year.

Another point is that petroleum was 6.5% of turnover but only 1.4% of profits on this basis in that year.

[garycook] 26/5/2022 02:49

ebb,If the $60.817 is Turnover then the $3.964 Petroleum earnings is Turnover also.So say around £1.5856 profit.Also forgot to mention that BHP still owns 48% of Woodside Energy now,after the de-merger.of the Petroleum unit.

[eggbaconandbubble] 25/5/2022 17:21

Gary, Turnover was $60.817bn not profit. Profit was $24.601bn. I tried to drill down into the Full year 21 results to find the petroleum contribution but gave up. Is that $3.964bn petroleum profit? In which case that's 15% contribution.

Or have I got it wrong!

[husbod] 25/5/2022 16:57

If this so called conservative government goes ahead with a windfall tax as well as the huge hike in corporation tax I will be even less impressed than I already am.

[nk104] 25/5/2022 16:37

There's also the point that hopefully Woodside Energy is less likely to be stuffed with windfall taxes if it makes money, unlike Shell and BP.

[income investor] 25/5/2022 16:19

Betman - tax treatment is income tax on the value of the Woodside shares when demerged (tax as a dividend), and CGT base cost will be their market value on that date. Hope that helps. This was tax treatment when Pru demerged Jackson Financial and BHP docs confirmed this would apply here.

[husbod] 25/5/2022 16:12

True probably and I'm all for ESG - as soon as it became the accepted wisdom with IIs etc I did the blindingly obvious and loaded up on Shell, BP and Harbour. Anyone who thinks the modern world can do without oil and gas in the next decade or so is living in a dream world, however bad that might be for the planet.

[saltraider] 25/5/2022 16:01

Thungela Resources experience provides a close comparator. Thungela share price has rocketed following the spin-out from AAL, while AAL share price has remained strong. Could be a great favour to BHP shareholders if divesting BHP petroleum activities unlocks their underlying value in a similar way.

[gateside] 25/5/2022 15:33

I don't see it being at our expense, as we will all get shares in Woodside Energy

[husbod] 25/5/2022 15:31

Great idea to divest ourselves of our oil production - another example of boards going woke at shareholders expense (and reality)

[garycook] 25/5/2022 14:13

Gateside,Good trade.

[gateside] 25/5/2022 14:10

Reinvested the proceeds from the GLO takeover today into BHP at 2415p for my wife's SIPPAgree the drop looks overdone today.

[garycook] 25/5/2022 13:40

ebb,Petroleum accounted for $3,946,000,of the 2021 BHP profits.This is only 6.5% of BHP,s 2021 FY profits of $60,817,000.The drop today is overdone.US Adr only down pre-market 1.83% atm.Bounced off 2403,now recovering.It will be interesting at what price BHP opens in the US.

[eggbaconandbubble] 25/5/2022 12:56

Gary - thanks for that!

[spawny100] 25/5/2022 12:35

Bit early with the top up Gary. Same as me!

[podgyted] 25/5/2022 11:14

Cheers Gary

[garycook] 25/5/2022 10:36

ebb, Maybe around a 10% reduction in the $350 FY dividend.So could still be around a 10% yield atm.Pogdyted WDS will trade UK on 06/06/2022.Currently $21.15 US Adr.UK price 1681.50p,overnight.

[eggbaconandbubble] 25/5/2022 09:55

Garycook - but will they be able to maintain the divi without the petroleum business?

[gateside] 25/5/2022 09:48

The code on the Australian Securities Exchange has changed from WPL to WDS to reflect the name change to Woodside Energy

[betman] 25/5/2022 09:28

Does anyone know how this divestment is treated for tax ( Income and CGT )purposes ? Is the value of the Woodside shares on the 1st June treated as a cash dividend and the "purchase cost" of Woodside at the price on that day for CGT
OR the purchase cost of Woodside treated as £0 for CGT purposes and no cash dividend value
Or something else

[loganair] 25/5/2022 08:35

Change of name - Woodside Petroleum becomes Woodside Energy.

The name change reflects an anticipated portfolio evolution through the energy transition.