reports
- 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) awa...
- Matthew Shields
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 ...
- Matthew Shields
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 ‘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 dow...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.