Tag: BHP

BHP Billiton’s (BHP) production of iron ore and metallurgical coal for the first half of the 2016-17 financial year is up, but volumes dropped in its petroleum, copper and thermal coal businesses.

BHP Billiton has given the firmest signal yet that it has moved past its shale oil and gas phase in the US with commitments to help fund two major Gulf of Mexico projects worth an estimated $US20 billion.

Suddenly, BHP Billiton (BHP) is bouncy, upbeat and looking forward as world commodity prices, led by coal, and helped by continuing solid prices for iron ore, show more signs of a rebound.

With a missed debt payment hanging over its head and BHP Billiton (BHP) and its Brazilian partner, Vale, still facing massive costs and penalties from the Brazilian government, a game of ‘dare’ has emerged over the future of the Samarco iron ore mine where a disastrous dam collapse late last year devastated villages and the environment, killing people and causing billions of dollars in damage.

Has BHP Billiton (BHP) identified a new gold/copper rush?

BHP Billiton (BHP) has again emphasised the growth options in its petroleum business, continuing its belief that oil and gas (and copper) are the best placed of its areas of interest for expansion in the next few years.

BHP Billiton shares will come under pressure on the ASX this morning after its 50% owned Brazilian iron ore miner, Samarco, missed an interest payment on $US500 million of bonds.

The Samarco mine disaster in Brazil has seen BHP Billiton’s board drop the bonus that would have been paid to CEO, Andrew Mackenzie for the year to June 30. Nineteen people died in the wake of the dam burst and flooding and dozens were injured, Several villages were destroyed and damage in the billions of dollars was caused.

So the big bad BHP news is out, dividends are down, the company’s turned in a loss for the year to June (and a much smaller underlying result) and there’s a bit of gloom and doom about. So what about the next year or two?

As expected, BHP Billiton took a big loss from the cost of the Samarco dam disaster in Brazil late last year, and slashed dividend because of the weaker underlying earnings performance.

As expected BHP Billiton has fallen short of its 2016-17 iron ore production targets but has topped its full year guidance for petroleum, copper and coking coal.

Take a careful look at BHP Billiton (BHP) and US gas and oil prices and wonder if there are better times in the offing for the company’s onshore unconventional oil and gas business in the US which has been a massive loss-making disaster area for the board, management and shareholders in recent years.

BHP Billiton says it is looking for another $US600 million ($A800 million) in cost cuts in its coal business over the next year, as well as floating the idea it could sell off more assets – as it did in Indonesia several weeks ago.

BHP Billiton (BHP) continues to sell off unwanted small scale assets, this time flicking coal mining assets in Indonesia to its partner.

BHP Billiton CEO Andrew Mackenzie has defiantly told a mining conference that the company is not going to be tied down, “waiting for prices to recover”.

BHP Billiton has joined its big rival Rio Tinto in trimming its West Australian iron ore production guidance.

Shares in BHP Billiton (BHP) continued to ignore last week’s downgrade by ratings group, Moody’s, rising for yet another day thanks to the continued rebound in key commodity prices.

BHP Billiton (BHP) shares rose strongly yesterday despite the news that the company and Vale had reached agreement on the first of the costly claims involving last November’s Samarco dam disaster.

Despite the sharp fall in interim profit and abandonment of its previous progressive dividend policy, BHP Billiton remains on the hunt for purchases in the copper and oil sectors, even as it acknowledges the outlook for its key commodities will be weaker than previously thought.

The slide in iron ore, copper, oil and gas prices in the six months to December has forced BHP Billiton (BHP) to bite the bullet and slash interim dividend 74% to just 16 cents a share.

The pressure is mounting on BHP Billiton (BHP) to cut or drop its dividend.

BHP Billiton (BHP) is facing another billion dollar hit to its bottom line (on top of last week’s $A10 billion whack) and has cut its full year iron ore production target thanks to the Samarco disaster in Brazil.

Brazil’s federal and state governments will sue BHP Billiton (BHP), Vale, (the owners of the Samarco iron ore miner) for 20 billion reais ($7.2 billion) in damages caused by the burst of a tailings dam on November and killed and injured two dozen people and caused widespread damage, according to the country’s Environment Minister Izabella Teixeira.

BHP Billiton (BHP) negotiated yesterday’s AGM in Perth with little difficulty, despite the now usual protests from the usual suspects, with the issue of the moment, the mine dam disaster in Brazil discussed extensively as well as the company’s dividend policy.

Another day of pressure for BHP Billiton (BHP) shares ahead of today’s annual meeting for Australian company shareholders in Perth, as fears about the cost and impact of the Samarco dam disaster escalate.

A moment for some truth on Thursday in Perth when Australian shareholders meet at the 2014-15 annual meeting.

More pressure on BHP Billiton (BHP) shares today as the markets sell-off after the Paris terrorist outrages and investor worry about the continuing slide in commodity prices – especially oil.

BHP Billiton (BHP) shares are facing a nasty 5% plus plunge on the ASX when trading resumes this morning after a another night of losses on global markets and the first fines imposed by the Brazilian government for the Samarco mine collapse a week ago.

Iron ore and copper production stood out in the Q1 exploration and production report from BHP Billiton (BHP) yesterday, along with news of more cost cutting in its petroleum division.

BHP Billiton (BHP) yesterday sprung a major surprise on its Australian shareholders by asking them to effectively sacrifice some of the company’s franking credits to allow it to meet its dividend requirements to its UK shareholders.

As expected BHP Billiton’s (BHP) 2014-15 results were lower than expected.

No sign of BHP Billiton (BHP) pulling back on its iron ore ambitions for the current financial year.

Ahead of its production and exploration report next week and the annual profit release next month, BHP Billiton (BHP) has revealed some financial housekeeping in its US shale gas business.

BHP Billiton (BHP) shares fell yesterday after the company’s March quarter production and sales update and news that it was cutting spending on its iron ore expansion – but would still reach its target, but more slowly.

BHP Billiton (BHP) boosted sales of iron ore by more than 16% in the March quarter to record levels, according to the company’s latest quarterly production and sales report issued this morning.

BHP Billiton’s (BHP) board has recommended shareholders vote for the proposed spin-off of assets that will become the new company South32.

BHP Billiton (BHP) says it won’t be changing its current export first policy for maximising returns on installed capacity at its Western Australia Iron Ore business (WAIO).

Standby for a surge in interest in BHP Billiton’s (BHP) ‘rats and mice’ collection of unwanted assets in aluminium, nickel, manganese and thermal coal after some of them staged solid recoveries in earnings in the six months to December 31.

Despite the expected sharp fall in interim profit, BHP Billiton (BHP) shareholders will get a $US0.62 interim dividend, compared to the $US0.59 cent dividend paid a year ago.