Avior Capital Markets - BHP Billiton Plc (BIL) BHP Billiton | Proxy voting and governance recommendation

Report

Avior Capital Markets

Matthew Shields

BHP Billiton | Proxy voting and governance recommendation

BHP Billiton (BHP) receives a governance score of 3.97 out of 5.00 (FY '17: 4.00) and is rated as 'good'. By comparison, sector related peer Anglo American (AGL) scored 3.65. The Board's mining experience is expected to decline following this years' AGM. We view the impending appointment of a strong mining candidate as imperative for the Board in FY'19. Andrew Mackenzie's (CEO) total remuneration increased by 2% y/y with his base salary remaining unchanged while his long-term incentive (LTI) awards did not vest for a third year. Overall, we commend BHP on its disclosures.

05/10/2018 14 EN

Underlying

BHP Billiton Plc

See profile

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

See profile

Analysts

Matthew Shields

Other Reports on these Companies

Avior Capital Markets

BHP Billiton | Increased focus

BHP's FY '18 results were slightly softer than our expectations. Solid Free Cash Flow generation allowed BHP to continue its de-gearing efforts. Encouragingly, BHP's strong balance sheet should allow the Group to return the net proceeds from the Onshore US divestment to shareholders. Following the divestment of its Onshore US business, BHP's further simplified portfolio should allow the Group to focus on its underperforming assets. We believe that BHP could remain cautious in the short-term as the Group commented that â€œdownside risks have increasedâ€ as rising trade protectionism could ...

August 22, 2018 August 22, 2018 10 EN

Avior Capital Markets

BHP Billiton | Productivity gains to offset headwinds

Rising costs and negative productivity gains plagued BHP's H1 '18 results. Despite the setback in productivity gains in H1 '18, BHP continues to target c.USD2bn of productivity gains by the end of FY â€˜19f. The Group remains confident that further productivity improvements should help offset inflationary pressure. BHP continues to prioritise balance sheet strength with its excess cash generated. However, we believe the priority could change. We estimate that net debt could continue its downward trajectory which could lead to increased shareholder returns. BHP believes that commodity pri...

February 21, 2018 February 21, 2018 11 EN

Tiger Brands | ESG | Pressed to execute

TBS receives a corporate governance score of 3.37 out of 5 (FY '18: 3.42) and is rated as â€˜good'. TBS receives an ESG risk score of 2.6 (FY '18: 2.6) which we consider moderate. As in FY '18, there were various changes to the Board which raises corporate governance concerns surrounding succession planning and the execution of strategies. Post year-end, L Mac Dougall retired as CEO of the Group. N Doyle has become the new CEO of the Group as of 1 Feb '20. We note the corporate governance concerns around the appointment of N Doyle given that he left the Group at an important juncture in FY...

February 7, 2020 February 7, 2020 15 EN

Ayan Ghosh

Ayan Ghosh

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

From an SA asset-allocation perspective, SA Bonds (ALBI +1.2%) outperformed cash (STEFI +0.6%) and equities (Capped SWIX -2.6%) in Jan â€˜20. The ZAR was the worst performing EM currency in Jan â€˜20, depreciating by 6.8% against the USD, as EM risk appetite declined, with the Coronavirus spreading further than the Sars virus, which began in 2002, likely to hit global growth. Our discussions with various corporates in China suggest that the Coronavirus will peak over the coming weeks and could take until Mar '20 to resolve. In USDs, MSCI SA (-8.8%) underperformed MSCI EM (-4.7%) in 2020, as ...

February 5, 2020 February 5, 2020 9 EN

Harry Botha

Harry Botha

SA Banks | Low credit risk in commercial property | Time to buy SA banks

Challenging SA economic conditions bring SA REITs credit health and banks' lending to the sector into the spotlight. Our analysis in this report provides greater detail on SA banks' exposure to commercial property and listed REITs. Our stress tests highlight that SA banks' lending to listed REITs (exposed to SA or offshore operations) has been conservative to date. REITs' equity capital and diversified portfolios support the property companies' credit health. While SA banks' near-term earnings growth prospects are geared to SA economic conditions, we highlight that valuations are undemandin...

January 28, 2020 January 28, 2020 36 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

BHP Billiton | Proxy voting and governance recommendation

BHP Billiton | Increased focus

BHP Billiton | Productivity gains to offset headwinds

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe