|Bid||43.75 x 1100|
|Ask||43.76 x 1200|
|Day's Range||43.37 - 43.80|
|52 Week Range||38.04 - 51.87|
|Beta (3Y Monthly)||0.98|
|PE Ratio (TTM)||13.68|
|Forward Dividend & Yield||3.12 (7.26%)|
|1y Target Est||45.74|
(Bloomberg) -- BHP Group named Mike Henry, the head of its Australian operations, as chief executive officer to steer the world’s top miner through looming challenges from slower growth in China and investor pressure over climate change.Henry, 53, a Canadian-born executive who joined BHP in 2003 from Mitsubishi Corp., previously led the company’s marketing division and coal operations. He will take up his new position on Jan. 1, the company said in a statement Thursday.He replaces 62-year-old Andrew Mackenzie as growth in China, source of more than half of BHP’s revenue, slumped in the third-quarter to the slowest pace since the early 1990s. Against this backdrop and broader trade concerns, BHP is seeking to bolster output in copper and oil as long-term demand weakens for iron ore, its top earner.Henry will take over as the company debates its exposure to China, “the growth path there and how they can diversify away from that,” said Camille Simeon, a Sydney-based investment manager at Aberdeen Standard Investments, which holds BHP shares and manages about $670 billion in global assets.“Climate change and the energy transition the world is going though are going to also be a key consideration, along with the maintenance of their strong asset base,” she said.BHP shares traded 0.3% lower in London after advancing 0.1% in Sydney trading.Henry had long been among the leading contenders for the job -- a group that included other executives, such as Chief Financial Officer Peter Beaven and Danny Malchuk, head of operations in the Americas. A few months ago, BHP approached external candidates including Anglo American Plc boss Mark Cutifani about the position, according to people familiar with the matter.Regarded by investors and staff as thoughtful and diplomatic, Henry built a public profile at BHP by leading the company’s opposition to proposals for a new tax on iron ore production in Australia. More recently, his division has encountered operational missteps including fires and a train derailment that left railcars loaded with iron ore strewn across Australia’s Outback.Henry, who will earn a base salary of $1.7 million, will tour BHP’s operations for the rest of the year before making any decision on potential changes to the executive leadership team. He plans to update investors at February’s half-year earnings on initial plans for reforms, he told reporters in Melbourne.“I am all about performance and improvement,” Henry said. “We have a great strategy and I see it as my job as the next CEO to build upon that foundation we’ve created to accelerate performance.” BHP will seek to better utilize data and technology to improve operations, and will maintain its focus on limiting the company’s impact on the environment, he said.Underlying profit is forecast to rise about 12% to $10.2 billion in fiscal 2020, before declining in each of the following two years, according to analysts’ estimates compiled by Bloomberg.“His biggest challenge will be to keep the return on assets going -- they’ve had the advantage of growing iron ore over the last 4-5 years, but that’s tapered off,” said David Lennox, a Sydney-based resources analyst at Fat Prophets. “They’ve really now got to look at what’s going to be the next item to grow them.”BHP’s new leader takes over a business that’s been stripped down and simplified under Mackenzie, in the post since 2013. This included the $9 billion spinoff of unwanted assets into South32 Ltd. in 2015 and a near $11 billion exit from U.S. shale operations last year. The producer had cut its number of operations by more than half, and is now considering potential new growth options.A pipeline of more than $8 billion worth of projects to expand petroleum output are being considered alongside other already sanctioned investments, the company said Monday.The producer will decide in early 2021 whether to press ahead with spending as much as $5.7 billion to bring the Jansen potash project in Canada into production, adding the fertilizer to its roster. The crop nutrient would add a material with a demand outlook that’s tied to population growth, rather than metals-intensive urbanization in China, according to BHP. Some investors oppose the plan, arguing potash prices are likely to remain weak and projected returns are too low.What Bloomberg Intelligence says:Significant experience in various commercial roles in both minerals and petroleum, as well as a stint as chief marketing officer, sets him up to lead the company as it embarks on a number of projects in several business lines.\-- Andrew Cosgrove, senior analystTop miners are preparing for a shifting outlook as China’s pace of growth cools, and amid prospects for steel output to plateau. Urbanization and industrialization in Africa and other parts of Asia, along with the need to supply metals to a rapidly expanding electric vehicle sector, will offer potential new sources of demand Ivan Glasenberg, chief executive officer of miner-to-trader Glencore Plc, said in a May presentation in Barcelona.Henry will also continue to grapple with costs and ramifications tied to the fatal 2015 waste dam spill at BHP’s Samarco iron ore joint venture in Brazil that’s overshadowed Mackenzie’s tenure. The disaster killed 19 people and is the subject of ongoing civil claims and investigations. Samarco is on track to resume some operations in the second half of 2020.Mackenzie will step down from his post at the end of this year, and retire from BHP at the end of June.(Updates shares in sixth paragraph)\--With assistance from James Thornhill and Thomas Biesheuvel.To contact the reporter on this story: David Stringer in Melbourne at firstname.lastname@example.orgTo contact the editors responsible for this story: Alexander Kwiatkowski at email@example.com, Keith Gosman, Jake Lloyd-SmithFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Mike Henry, the incoming CEO of BHP Group, could take a lesson straight out of Japan’s corporate playbook when he faces the challenge of slower growth in the top commodities consumer China.The 53-year-old led a group of BHP executives last year on a tour of U.S. manufacturing plants that have implemented principles of kaizen -- the philosophy of continual improvement famously championed in Japan by Toyota Motor Corp.Henry, who previously worked at Mitsubishi Corp., has been an advocate within BHP for standardizing procedures and encouraging front-line workers to devise better methods of improving their own work.After being named on Thursday to replace Andrew Mackenzie as head of the world’s biggest miner from the start of 2020, he made it clear productivity would be a major plank of his leadership.“I am all about performance and improvement,” Henry told reporters Thursday at the miner’s Melbourne headquarters. “That discipline, that performance, is what will insulate us and allow us to navigate an uncertain world in the right way, where we can continue to grow value.”Uncertain OutlookWith a darkening long-term demand outlook for key commodities such as iron ore, and the need to balance spending on new projects against continued returns to investors, Henry will look to new productivity gains as a tool to help defend margins.“As a concept, this is what shareholders want -- efficiencies and improvements,” said Craig Evans, a Sydney-based portfolio manager at Tribeca Investments Partners Pty. “It’s going to be a big focus for everybody, and it would be good to see how he thinks that can be implemented.”Winning new gains from better performance may not be an easy task. Even as BHP cut costs at its Australian iron ore mines in the last fiscal year, some coal assets failed to meet company cost guidance. There have also been operational missteps at BHP sites since late 2018, including the dramatic derailment of an iron ore train in Australia’s vast Outback.BHP and its rivals are also facing the slowest pace of growth in China since the early 1990s, a factor that threatens to propel the industry into its most challenging decade in generations, according to RBC Capital Markets.Henry, a guitar-player with two adult daughters, joined BHP from Mitsubishi in 2003 and had earlier been seconded to a coal joint venture between the two companies. Known by investors and staff as polite, forensic and a key champion of gender equality, the Canadian national previously carried out an audit to make sure mines and offices had enough sanitary bins for female staff.The new leader will tour BHP’s global operations for the rest of the year before setting out proposals for strategy shifts, or changes to the miner’s team of top executives, he told reporters.To contact the reporter on this story: David Stringer in Melbourne at firstname.lastname@example.orgTo contact the editors responsible for this story: Alexander Kwiatkowski at email@example.com, Keith GosmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Calm and considered, incoming BHP Group Ltd chief executive Mike Henry is seen as a safe pair of hands to steer the world's largest mining company through what he says are uncertain times. A Canadian with 30 years experience in mining, including 16 at BHP and the past three at the helm of BHP's Australian business, Henry was named on Thursday as the sucessor to Andrew MacKenzie. While less well known to the investment community than some of BHP's other senior executives, Henry, 53, has a reputation as a thoughtful, ethical, diligent leader, more a safe pair of hands than an aggressive company builder.
(Bloomberg Opinion) -- When times are good, focus on the top line and the bottom line will look after itself. When times are bad, you should do the reverse.That looks a lot like the strategy the world’s biggest miner, BHP Group, has followed over the years in appointing its chief executive officers. The question the resources sector should ask in looking at Thursday’s appointment of Mike Henry to succeed Andrew Mackenzie is whether his focus is the top line, or the bottom.Henry has spent the last three years as the operations chief for BHP’s Australian assets, where he’s focused on improving efficiency and bringing down costs — resolutely bottom-line work. The bulk of his experience, however, is in the top-line marketing side of the business — finding ways to get the best possible prices for the minerals BHP digs and pumps. That resume harks back to Mackenzie’s predecessor.With an upswing in prices for its key commodities of iron ore, coal and oil under way in 2007, BHP appointed Marius Kloppers, a South African veteran of its manganese business, to the chief executive role. Kloppers pushed hard to shift the pricing of first manganese, and then iron ore and coal, toward spot markets that more closely track supply and demand.That helped BHP and its competitors extract additional revenues from their customers as spot prices surged in the years before and after the 2008 financial crisis — but when the market started to turn six years later, the emphasis started to look misplaced. After the demand growth that had supported the capital spending boom of the Kloppers era started to ebb, BHP's operations looked bloated and wasteful.Mackenzie, with a background running petrochemicals for BP Plc and mines for Rio Tinto Group and BHP, was brought in as an operational wizard to fix the rot. He slimmed down the business, spun off the less attractive assets as South32 Ltd., and reduced expenditure to a level that could survive in the new, leaner environment.At first blush, Henry looks like a swing of the pendulum from Mackenzie’s operations focus back to Kloppers’ marketing background.He sold first coal, then energy and freight and petroleum for BHP before being appointed as Kloppers’ marketing president and then chief marketing officer in 2010. Only after Mackenzie took over the top job and Henry was entering the frame as a potential eventual successor was he shifted over to round out his experience on the operations side.There’s reason to think that a more bullish focus is finally due. The resources sector has never really climbed out of the slump it entered around 2014, but the S&P 500 breaks new records on a daily basis. Forecasters could be underestimating the potential of a strong economic rebound in 2020, according to Goldman Sachs Group Inc. Bloomberg’s indexes of energy and industrial metals are still at subdued levels, but the run-up in iron ore prices this year put Australia & New Zealand Banking Group Ltd.’s index of bulk materials such as iron and coal at its highest level since 2013. That should be good news for BHP, since its share price tends to track that benchmark closely.At the same time, it seems to have been as much Henry’s recent experience managing mines that’s recommended him for the top job. He’s been responsible for rolling out autonomous trucks at the Jimblebar iron ore mine in northwest Australia and for setting up operations centers in Perth and Brisbane to run the company’s iron and coal mines remotely. Costs of late have been sharply lower in both divisions, although those for Queensland coal are creeping back up.If anything, it’s a sign of how things have changed for the mining industry that even scions of the marketing business like Henry have turned into born-again operations experts. BHP still has Elliott Management Corp. hanging around as a major shareholder. While its activist campaign will have been quiet for almost two years by the time Henry assumes the top job in January, it remains a constraint on any chief executive in a bullish mood.More to the point, a stronger outlook for the U.S. economy isn’t the medicine that can revive BHP’s boom years. China still consumes about half of almost every major mined commodity and accounted for about 55% of BHP’s revenue last year — and all the evidence is that the economy there is slowing. BHP’s key commodities could be heading for an even rougher patch if China’s car market continues to crater and its still-buoyant conditions in real estate fall to more normal levels.Should that be the case, the pendulum won’t be swinging back from the bean-counters to the marketers. If anything, it will have further to go in the other direction.To contact the author of this story: David Fickling at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
BHP Group Ltd on Thursday named its Australian head Mike Henry to succeed Andrew Mackenzie as the miner's chief executive, shunning calls from some investors for fresh blood from outside the Anglo Australian giant. Mackenzie, 62, will step down on Dec. 31 ending nearly seven years in charge of the biggest global miner, during which time he overhauled the company, spinning off a raft of assets and cutting costs sharply. Henry, a 53-year-old Canadian who joined BHP in 2003, has led its Australian operations over the past three years, including its biggest earner, iron ore, and the world's largest metallurgical coal operations.
The company's petroleum head said the business is set to deliver strong returns and cash flow through the 2020s and beyond, supported by high-potential projects in the Gulf of Mexico, Western Australia and Trinidad & Tobago. Petroleum, which accounted for about 16% of BHP's underlying earnings in 2018/19, could potentially generate margins of more than 60% over the next decade, Geraldine Slattery, President Operations Petroleum, told a briefing. Excluding the shale business, the company's oil and gas arm has long had some of the strongest returns in the group's portfolio, including iron ore, copper and coal.
BHP Group's Australian shareholders on Thursday voted against a resolution to axe the global miner's membership in industry groups that advocate policies counter to Paris climate change treaty targets, backing the board's call and echoing the stance taken by BHP investors in London. Votes tallied after BHP's annual general meeting (AGM) in Sydney showed 72.93% rejected the resolution, BHP said in a filing. At the London AGM, only 22.16% of votes supported the motion.
(Bloomberg) -- BHP Group, the world’s biggest miner, sees moves to resolve trade tensions between China and the U.S. as likely to stimulate global growth and help spur demand for raw materials, including copper.“A roll back of some of the tariffs, and a sense that some progress is being made is going to calm markets, stimulate some form of growth and you might expect commodities like copper” to recover, Chief Executive Officer Andrew Mackenzie told reporters Thursday in Sydney.The U.S. and China have been trying to negotiate a limited trade deal that would entail the U.S. dropping some tariffs on Chinese imports in exchange for Beijing resuming purchases of American farm goods and other products.The tentative signals that an initial agreement is closer are “a step in a bullish direction” for metals markets, and there are already signs that overall macroeconomic sentiment is improving, Citigroup Inc. analysts said in a Tuesday note.“A degree of thawing, and a willingness to talk these problems through and not always rush to the tariff barrier, will be a positive development for the world economy, and for us,” Mackenzie said. BHP wins about 55% of its revenue from China, according to data compiled by Bloomberg.Moves to decarbonize transport and other sectors through electrification should add to copper demand in the next decade, just as supply is pressured by falling grades at aging mines, according to Mackenzie. “The 2020s should create better times for copper, but when exactly -- we can’t predict that.”Copper has declined about 10% since April amid worries over weaker demand as the world’s economic expansion cools. It fell for a second day Thursday amid an apparent lack of fresh progress in the trade talks.To contact the reporter on this story: David Stringer in Melbourne at firstname.lastname@example.orgTo contact the editors responsible for this story: Alexander Kwiatkowski at email@example.com, Keith Gosman, Phoebe SedgmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
BHP said the funding will enable the construction of a filtration plant and a restart at Samarco, where operations were suspended following the tailings dam failure in November 2015 that killed 19 people. Last week, Samarco won permission from the environmental regulator of the Brazilian state of Minas Gerais to resume operations at the Germano iron ore mine. Vale said separately it expected production at Samarco to resume toward the end of 2020.
Investing.com - Asian equities were mixed in morning trade on Thursday. Hong Kong markets climbed, led by property developers after the government announced measures to ease the city’s housing shortage.
Dividend paying stocks like BHP Group (ASX:BHP) tend to be popular with investors, and for good reason - some research...
In August 2019, BHP Group (ASX:BHP) announced its most recent earnings update, which indicated that the business...
Digging into the copper mining industry can reveal some potential investment opportunities and better explain what it takes to make money from an ore that is growing in value.
Several BHP Group shareholders, including the Church of England pension fund, are recommending the company suspend its membership in industry groups that advocate for policies inconsistent with the Paris climate change agreement. The resolution was filed on Tuesday by the Australasian Centre for Corporate Responsibility (ACCR) ahead of BHP's annual general meetings (AGM) in London and Sydney, the ACCR said in a statement. Co-filers included the Church of England Pensions Board and Grok Ventures, the private investment vehicle of Australian tech billionaire Mike Cannon-Brookes, as well as institutional investors that combined hold A$140 billion (77.02 billion pounds) under management.
BHP Group (ASX:BHP) stock is about to trade ex-dividend in 4 days time. This means that investors who purchase shares...