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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Bhp Billiton | BLT | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
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|---|---|---|---|---|
| 0.00 | 0.00% | 1,573.00 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 1,573.00 | 1,573.00 |
| Top Posts |
|---|
Posted at 03/11/2018 19:10 by loganair MINING BONANZA Shareholders in BHP Billiton were feeling flush as the mining giant promised to return £8billion to them.Half would come through buying back investors’ shares, while £4billionn would be through a dividend in January. (This will equate to around £1.90 per share) It comes after BHP sold its US onshore oil and shale gas assets in July. |
Posted at 20/10/2018 09:13 by loganair BHP cautious but optimistic about long-term outlook:BHP boss Andrew Mackenzie indicated this week the company had so far managed to avoid any significant impact from escalating trade tensions and, while it remained cautious, it was also positive about the outlook for metals demand. He was speaking at the mining giant's annual general meeting in London. "The nature of our industry means we must make bold predictions about the future. If there is one prediction that I can confidently make, it is that demand for commodities will be sustained even as the world shifts to a lower carbon future," Mackenzie told investors. He said with populations growing and more people expecting a better quality of life through improved infrastructure, decarbonisation and electrification, demand for energy, metals and fertilisers should be robust for decades to come. "Renewables, electrification and a low-carbon future offer great opportunities for BHP. They will generate demand for higher volume, as well as higher quality, iron ore, metallurgical coal and copper concentrates - the products our portfolio is built around," Mackenzie said. "You can count on BHP to lead and capitalise quickly on this shift." He said the miner was in a good place to move forward into the 2019 financial year, with free cash flow maximised to US$12.5 billion in the year, capital discipline maintained, net debt reduced by more than $5 billion and the portfolio simplified to meet demand for resources required now and in the future. Despite his positivity, Mackenzie did allow that all global businesses were having to navigate through volatility and monitor events impacting global economic growth and commodities demand. He said it was well known that protectionism had negative flow-on effects for business, as it undercut confidence, disrupted investment, and destroyed productivity, which in turn hit wealth creation and poverty eradication. "Hence, I expect that the current assault on the global trading system will jolt countries outside of this dispute into action. This is not a time for complacency. When the fabric of global trade frays, we must pull together and administer needle and thread," Mackenzie said. He said BHP would continue to stay true to its plans. "There is more to do to realise the full potential of our assets, and how we manage them for shareholders, through technological advances, culture and organic growth." |
Posted at 27/9/2018 12:20 by hubshank Upcoming events17 October 2018 08:30 AM Melbourne time (approximate) BHP Operational Review for the quarter ended 30 September 2018 17 October 2018 11:00 AM London time From their investor relations website. |
Posted at 26/9/2018 22:45 by loganair Deutsche Bank reckons all of BHP Billiton’s near-term catalysts are in the past:“After outperforming year-to-date on (1) successful sale of the US Onshore business (2) strong oil prices (3) improved operational performance in H2 FY18, the major near-term re-rating catalysts are behind us” BHP Billiton has been downgraded to ‘hold’ by analysts at Deutsche Bank. It has been a busy year for the coal, copper and iron miner, which last month declared a record dividend pay-out following a 33% jump in profits. BHP disposed of its US shale gas assets for US$10.7bn over summer, while the rebounding oil prices – BHP is an oil producer as well as a miner – and improved operational performance have all contributed to the strong 2018 so far. Unfortunately for investors, Deutsche analyst Liam Fitzpatrick acknowledges the strong share price performance since the turn of the year but reckons most of the “major near-term catalysts are behind us”. He does, however, think there is room for BHP to get rid of some of its other non-core assets from its portfolio. “After spinning out South 32 in 2015 (US$9.4bn) and recently selling US Onshore (US$10.7bn), BHP is more simplified but not yet simple,” wrote the analyst in a note to clients. “We still see other assets in the portfolio that are, like the South 32 assets previously, likely to receive less capital than the major divisions. These include Nickel West, the Australian oil/gas assets and NSW Energy Coal.” Fitzpatrick isn’t convinced that management will push ahead with these and certainly not at a pace he would like. “The pace of simplification is clearly slowing and management's recent commitment to the remaining oil/gas portfolio suggests that longer term (FY21+) capex could move above the US$8bn per annum ceiling set for FY19/20.” Fitzpatrick dropped his rating to ‘hold’ from ‘buy’, while he also lowered his price target to 1,800p from 1,860p. |
Posted at 14/8/2018 16:27 by waldron Copper prices fell near a fresh year-to-date low on Tuesday after data showed fixed-asset investment in China slowed to a nearly two-decade low in the first seven months of the year and Bloomberg News reported that BHP Billiton Ltd. could avoid worker strikes at the world's largest copper mine.Copper for September delivery slumped 1.7% to $2.6835 a pound on the Comex division of the New York Mercantile Exchange. Prices are down almost 20% from their June four-year highs, hurt by worries that trade tensions between the U.S. and China will accelerate a Chinese economic slowdown, weakening demand for materials used in construction and manufacturing. China is the world's largest commodity consumer, accounting for about half the world's copper demand. Tuesday's data showed spending on factory machinery, public-works projects and other fixed-asset investments in China's nonrural areas grew 5.5% in the January-July period from a year earlier, matching a record low from 1999. "The response of metals prices to the data from China is correspondingly negative," Commerzbank analysts said in a note to clients. Other industrial metals including aluminum, tin and lead also fell on the London Metal Exchange. As investors have grappled with the prospect of lower copper demand, data has pointed to steady production and disruptions from worker strikes that boosted copper last year haven't materialized. Copper's losses accelerated Tuesday after Bloomberg reported that the union at Chile's Escondida mine is optimistic about reaching a wage agreement with BHP, potentially ending the prospect of a strike that could lower production. A 44-day strike at Escondida last year helped support copper prices. Among precious metals, gold for December delivery edged up 0.4% to $1,203.80 a troy ounce, boosted by declines in the dollar. The dollar surging has pushed gold to its lowest level since January 2017 by making the yellow metal more expensive for overseas buyers. On Tuesday, the WSJ Dollar Index, which tracks the dollar against a basket of 16 other currencies, fell 0.2% after closing at a fresh 15-month high Monday. Write to Amrith Ramkumar at amrith.ramkumar@wsj. (END) Dow Jones Newswires August 14, 2018 11:02 ET (15:02 GMT) |
Posted at 14/5/2018 14:34 by loganair A looming East Coast gas shortage, China’s push for quality iron ore and a Banking Royal Commission spooking investors off big four bank stocks has contributed to strong share price gains out of BHP Billiton of late – with shares now sitting at a 52-week high.The Sydney Morning Herald last week reported BHP would benefit from Chinese steel-making customers willing to pay higher prices for quality iron ore and coking coal as the country sought to reduce its environmental footprint. BHP has also benefited from a rapid increase in oil prices off the back of Middle East fears and the company logged an impressive operational review for the period ended March 31 with all major projects tracking to plan and 6% volume growth expected for the 2018 financial year. |
Posted at 08/3/2018 09:34 by loganair BHP Billiton may be able to deliver a bigger-than-expected capital return later this year on news that it could get as many as 50 qualified and interested parties to look at its shale assets.There’s nothing like a bit of competition to drive up asset prices and BHP has already gotten 24 parties to sign confidentiality agreements to enter its data rooms for the sales, according to the Australian Financial Review. The market is already expecting the sale of its unconventional oil & gas assets and for BHP to hand most of the proceeds back to shareholders in some form of capital return. However, investors are pricing in the sale at a big discount to book value as BHP had overpaid for these assets during the “boom” times and had to write down their value. Even then, these assets (namely Eagle Ford, Haynesville, Permian and Fayetteville) are sitting on BHP’s balance sheet with a US$14 billion ($17.88 billion) valuation – or 42% lower than what the miner thought it was worth in 2015. I don’t think the market believes BHP can get that much for the assets but the discount to book value may be skinnier than what many are thinking given the intense interest BHP seems to be receiving. What’s more, the oil price is holding up better than what experts were forecasting last year and that has no doubt contributed to the interest in these assets. Some keen buyers are offering an asset swap or a combination of assets and cash to consummate the deal. It’s too early to predict the outcome but BHP’s board knows an all-cash deal would be the favoured outcome for investors as the world’s largest miner has indicated that it will give back as much cash as possible to shareholders from the sale process. Getting a cash offer that is close to book value will trigger a rally in BHP’s share price. To give you a sense of perspective, the miner paid an interim dividend of $2.28 billion this year. Getting sales proceeds that are anywhere close to $18 billion is game changing! But it’s unlikely that BHP will use a one-off windfall to increase dividends. Most of the cash is likely to be returned through a share buyback of some sort – similar to how Rio Tinto Limited undertook its latest capital return – although a special dividend cannot be totally ruled out either. As I wrote, the cash-flushed BHP could unseat Commonwealth Bank of Australia as the most generous dividend payer on our market in the not-too-distant future. |
Posted at 10/10/2017 10:51 by loganair By James Mickleboro:In afternoon trade the BHP Billiton Limited (ASX: BHP) share price has edged higher to $26.64. This small gain has brought the mining giant’s year-to-date return to almost 7%. But according to one leading broker the BHP share price could still have a little further to run over the next 12 months. A research note out of Deutsche Bank this morning reveals that its analysts have retained their buy rating and increased the price target on its shares to $28.50. According to the note, the broker has increased its price target after making positive adjustments to its iron ore earnings forecasts. Should you invest? In my opinion, an investment in BHP comes largely down to whether petroleum and iron ore prices remain favourable. Combined these two commodities accounted for approximately 65% of company EBITDA in FY 2017. As I’m more bullish on oil prices now than I was last time I looked at BHP, I would agree with Deutsche that it could be a good time to pick up shares . Margins in iron, coal and copper were significantly higher over the last half-year. BHP Billiton has removed substantial cost from its operations, and is much more efficient than it was 5 years ago. Cost savings have continued, with some $2 billion in additional productivity gains. Capital expenditure has continued to moderate and, perhaps most surprising, margins have increased significantly. Five years ago or so BHP Billiton said it would "emerge stronger" on the other side of the commodities downturn. That was not an idle promise. BHP has emerged and it is much stronger, with both a lower cost structure and less debt. Basically, BHP has reduced capital expenditure to where it just offsets declines in production. Next year capex is expected to increase to $6.9 billion, but even then, the cash flow situation will be just fine. Over the last twelve months, BHP generated $16.8 billion in operating cash flow, spent $4.6 billion in GAAP-recognized capex, leaving $12.2 billion in free cash flow. The next twelve months' dividend, if the dividend per share remains the same, will be $5.3 billion. That leaves a lot of excess cash flow, which I suspect will go towards further debt reduction or a higher dividend. Management more than doubled the dividend in 2017. A solid choice for income investors: I was nervous about getting back into BHP thirteen months ago, when shares were $6 lower than where they are now. Today, however, I'd like to recommend BHP for income investors. Yes, I missed the bottom near $20, but BHP is now on much more solid ground, and has an attractive dividend. Commodities appear to have broadly bottomed and seem to be going higher. In general, there are very few 'greenfield' projects out there and demand continues to tick higher for most hard commodities, including iron and coal. At present, BHP Billiton is spinning off lots of cash, and it will continue to do so as commodity prices rise or at least remain stable, which I believe they will. I think BHP is now quite a good income play, and I believe that income investors who buy in now will not regret it in the long run. |
Posted at 03/2/2017 10:12 by loganair Why Commodities Are Set To Offer More Than Just High Volatility In 2017:The best word to sum up the performance of commodity prices in recent years has been 'volatile'. Their prices have swung violently and left many resources companies and investors nursing heavy losses at times For example, since Donald Trump's election victory the price of gold declined by as much as 13%, while during the same time period the oil price has risen by 12%. Similarly, iron ore is up over a third from three months ago and has left behind a trail of considerable volatility. Looking ahead, commodities could continue to be volatile. After all, the outlook for the global economy is highly uncertain. However, they may also offer significant profitability for those investors who are able to buy and hold through what may prove to be yet more yo-yoing prices. Supply and demand: Clearly, commodity prices are always heavily dependent upon changes in supply and demand. In the case of oil, the outlook for 2017 is relatively positive. OPEC agreed in November to reduce production by 1.2m barrels of oil per day. This was somewhat surprising and was followed by a cut among non-OPEC members. Although demand growth has been somewhat sluggish in recent years, the imbalance between demand and supply is expected to narrow in the coming months. In fact, the International Energy Agency (IEA) predicts the current oil surplus will become a deficit before the end of the first half of 2017. Given that forecast, it seems likely that the oil price will continue to move higher in the short term at least. Therefore, it would be unsurprising for oil-focused companies to record strong returns in the coming months. An uncertain outlook: While the price of gold came under pressure following Trump's election victory, it has recovered strongly in 2017. It is up 3.5% since the turn of the year and it could keep rising during the coming months. A key reason for this is the high degree of uncertainty that faces the global economy. In the US, Trump's economic policies are likely to include significantly higher spending on infrastructure, coupled with lower tax rates. The effect of this is likely to be higher rates of inflation which the Federal Reserve may or may not be able to slow down through higher interest rates. During periods of a rapidly rising price level, demand for gold increases because it is seen by many investors as a store of wealth. In addition, gold's outlook could be positive because of uncertainties in Europe. The precious metal's status as a defensive asset may come into play as Brexit negotiations start within the next nine weeks. French elections could also increase the attractiveness of risk-off assets such as gold. Similarly, a slowdown in China's growth, caused by a more protectionist global economy, may also cause gold's price to rise this year. A changing China: While gold and oil offer clear catalysts for price growth, iron ore's future is somewhat more opaque. It has benefited in recent months from the Chinese government's stimulus programme, as well as continued rising steel production in the world's second-largest economy. Furthermore, the mothballing of various large projects within the iron ore industry has caused investors to anticipate a more favourable price in the long run, given the current relationship between demand and supply. However, the reality is that China's economy is not only slowing, it is also transitioning. It is currently the largest importer of iron ore in the world, but its move away from infrastructure-led growth and towards consumer-led growth could mean demand for iron ore falls in the long run. Therefore, while the iron ore price could rise in 2017, it is perhaps less likely to do so than other commodities such as oil and gold. While commodity prices could remain volatile during 2017, they also offer the potential for high profits. Therefore, investors who are able to live with prices that lack the consistency and stability of shares in other sectors may have an opportunity to benefit. Certainly, the outlook for gold and oil is relatively positive. In gold's case, it could benefit from the uncertainty which looks set to be a key feature of 2017. Similarly, oil's price could respond positively to demand catching up to supply over the coming months. While iron ore's future may be less attractive than that of oil and gold, lower than expected supply and increasing steel production in China could push its price higher during the course of the year. As such, now could be a good time to buy shares in resources companies. Due to the high volatility and falling commodity prices in the past, wide margins of safety and low valuations appear to be on offer. While paper losses seem likely to be recorded at times during the year, by the end of 2017 there could be a tidy profit awaiting those investors brave enough to buy resources companies now. |
Posted at 09/12/2016 11:25 by loganair By Paul Franke, Contrarian, long/short equity, special situations.Summary: BHP is financially strong and well positioned at the 2016 commodity bust low. The stock is trading at a long-term discount ratio relative to book value and trailing cash flow. Shareholder value is increasing smartly with rising industrial commodity prices of late. BHP Billiton is one the largest diversified natural resource miners in the world, mainly selling to Asian customers from its Australia headquarters. It serves four main markets - petroleum, copper, iron ore and coal. BHP is a subsidiary of BHP Billiton Group, with 65,000 employees around the world. After suffering through 5-10 years of a painful commodity cycle bust, including low inflation rates globally, a great recession in demand, and serious oversupply issues in each commodity mined, the company appears well positioned to serve as a portfolio inflation hedge going forward. With a $38 stock price today, lower than 10 years ago and considerably off its all-time peak of $104 in 2011, BHP investors are ready for brighter days. Rising smartly from the early 2016 commodity bust low under $20 per share, just a small change in underlying business fundamentals and expectations by investors has doubled its 2016 equity quote. Long-Term Value Play: Using Wall Street analyst consensus numbers, June 2016 fiscal year operating income per share of $0.46 is expected to double to $0.91 this year (June 2017), and almost double again by June 2018 to $1.66. After years of write-offs, mine closures, and asset restructurings, BHP still holds $54 billion in shareholder equity. Against $64 billion in total liabilities, the conglomerate is in excellent financial shape moving forward in the capital-intensive mining industry. At an equity market capitalization around $100 billion presently, considerable value is still inherent vs. both book value and trailing cash flow. The 10-year average price to BV is close to 4x and CF a little over 10x. Compare that to today's 2x BV and 9x trailing CF ratios. If Wall Street estimates prove correct, one can easily project a $60-$70 target price for BHP by 2018, using history as a guide. A bonus for investors is the company has a decades long record of paying dividends. The indicated annual payout rate of $0.56 (1.5% dividend yield) could rise dramatically in coming years if commodity inflation takes off. Commodity Inflation Hedge: Not only does BHP Billiton have above average shareholder value right now, a strong balance sheet, large diversification of output/resources, and low overall costs, but it is gaining upside momentum as commodity prices have zig-zagged higher since early 2016. Iron ore has risen from $40 to $80 per ton the last 12 months, crude oil $36 to $51 per barrel, natural gas under $2.00 to well over $3.00 per BTU in the U.S., coal (depending on variety) +50% to +100%, and copper $2.10 to $2.70. Mind you this sharp increase has occurred during a period of relative U.S. Dollar strength, not weakness. Given any type of Dollar weakness, commodity upside in 2017 could be exaggerated dramatically HIGHER. How much upside is left in BHP? Plenty for long-term investors. During the strong boom period for commodities between 2003 and 2008, the company's earnings rose 10-fold over five years. The stock price exploded from $10 to $95 over the equivalent span. One can argue the 2016 blow-out bottom in valuations was just as big a bargain versus 2003 or the great recession crash low of 2008-09. For long-term investors, especially those searching for a conservative hedge against commodity inflation or a lower U.S. Dollar currency, without oversized volatility or investment vehicle time decay, BHP is a unique choice. Strong Momentum Trading Characteristics: The last 3-6 months have been good to BHP investors. BHP is performing far better than the S&P 500 average large cap business, Gold Miners ETF and Oil Producers ETF, while performing almost as well as its higher leveraged mining brothers & sisters in the Basic Materials Mining ETF and Coal Mining ETF. Of particular note for BHP is a robust buying trend in the On Balance Volume [OBV] indicator. In a nutshell, sellers have been few and far between since September, when measured against increasing buying volumes and investor enthusiasm. Conclusion: From late 2016, any strength in commodity pricing will go directly toward BHP's bottom line, increasing profits and sales per share disproportionately, all else being equal. Investors in the company have moved from a truly pessimistic view of the company at $19 per share in January to a more realistic outlook in coming years. The result has been a rough 100% gain in price to $38 today. The strong momentum since the summer has my Victory Formation momentum system pointing to BHP as a great buy idea on weakness. Specifically, a drop to $35 or $34 a share would be a welcome entry point for new long purchases. Nevertheless, a quote decline may or may not occur soon. If you are in need of a good uncorrelated hedge idea in a financial asset portfolio of stocks and bonds, BHP Billiton Limited should definitely be on your radar screen for additional review. |
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