|Bid||38.90 x 0|
|Ask||36.08 x 0|
|Day's Range||35.91 - 36.11|
|52 Week Range||30.31 - 42.33|
|Beta (3Y Monthly)||0.88|
|PE Ratio (TTM)||22.56|
|Earnings Date||Aug. 21, 2019|
|Forward Dividend & Yield||1.92 (5.32%)|
|1y Target Est||25.45|
Dividend paying stocks like BHP Group (ASX:BHP) tend to be popular with investors, and for good reason - some research...
(Bloomberg) -- BHP Group has talked to Anglo American Plc Chief Executive Officer Mark Cutifani about running for the top job at the company, according to people familiar with the matter.BHP made the approaches earlier this year and again more recently, said the people, who asked not to be identified as the process is confidential. Cutifani rebuffed the company’s advances so far, they said. BHP favors an internal hire, but also wants to speak with external candidates, the people said.Spokesmen for Anglo and BHP declined to comment.Cutifani has said in previous interviews he planned to stay until Anglo finished its $5 billion Peruvian copper project Quellaveco, which may start production in 2022, by which time he will be in his mid-60s.There has been speculation for years about who might take the reins of BHP, the world’s biggest mining company, once Andrew Mackenzie steps down. Analysts have expected that Mackenzie, 62, could make an exit in 2020, by which time he would have held the job for seven years.BHP Chairman Ken MacKenzie, no relation to the CEO, has favored the idea of promoting an executive to the top job, which he views as less risky, according to the people. Current front-runners are Peter Beaven, the chief financial officer, Mike Henry, head of Australian operations and Daniel Malchuk, who runs the Americas business.Melbourne-based BHP is the biggest company in Australia and has long been seen as a national champion, but it hasn’t had an Australian-born boss since merging with Billiton Plc in 2001.Cutifani, who hails from Australia and has a background in mining engineering, has overseen one of the industry’s most successful turnaround stories in the past five years.He took the helm of Anglo in 2013 after the company lost billions in stock-market value from a disastrous foray into Brazilian iron ore. In 2015, Anglo faced down possible bankruptcy because of plunging metal prices and a heavy debt load.Cutifani steered the recovery by reducing Anglo’s debt burden, as well as cutting back on costs and employees. At one point, the company planned to sell half its assets, but later canceled the sales as prices for iron ore and copper started to roar back.Since the start of 2016, Anglo shares have risen sixfold, far outpacing other blue-chip mining shares. As profits recovered, Anglo has invested heavily in new projects, such as Quellaveco, while other mining companies have put a greater focus on returning cash to shareholders through dividends and share buybacks.BHP CEO Mackenzie, also appointed to his role in 2013, has worked to slash the size of BHP. He led the company through a $9 billion spin off of South32 in 2015 and a $10.5 billion exit from U.S. shale operations last year.To contact the reporters on this story: Thomas Biesheuvel in London at email@example.com;David Stringer in Melbourne at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Nicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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...
(Bloomberg Opinion) -- There goes the other pipeline. Back in the day, BP Plc was sometimes dismissed as a “two-pipelines company.” This referred to two of its biggest positions: The Forties field and pipeline system in the North Sea and the Trans Alaska Pipeline bringing oil south from the Prudhoe Bay wells in Alaska. Forties was sold off in 2003 (the field) and 2017 (the pipes). Now, BP is leaving Alaska.In some respects, the $5.6 billion sale of the company’s Alaska portfolio is par for the course. BP has been selling assets for much of this decade in order to fund compensation and reshape the business after 2010’s Macondo blowout. More generally, selling mature oil and gas fields to smaller, independent companies planning to squeeze out more is a standard part of the development cycle. In 2003, Apache Corp. took Forties; the Alaska sale is to privately held Hilcorp Energy Co. To be an oil major is to be constantly ranking projects in terms of potential and deciding if you’re better off keeping them or flogging them.Yet the symbolism is inescapable. Alaska is embedded deeply in BP’s history and identity. Former CEO Lord John Browne, who led the late 20th-century mega-mergers that transformed BP from a two-pipeline company, kicked off his career there in 1969, just after BP struck oil. One of those big deals he ended up doing, the $33 billion acquisition of Atlantic Richfield Co. in 2000, was predicated in part on consolidating BP’s position in Alaska – only for antitrust regulators to force the sale of those particular assets to Phillips Petroleum Co. (now ConocoPhillips).Back then, BP was on the hunt for “elephants,” or giant oil and gas fields that typically took many years – and country-sized balance sheets – to develop. Hence Browne’s acquisition spree.The world has moved on. While producers still relish big discoveries, the intervening boom and bust in oil prices has made investors leery of big-ticket investments and more demanding in terms of payouts. Apart from, by and large, holding capex budgets in check, oil majors have been retreating from traditional strongholds, with Royal Dutch Shell Plc virtually leaving the Canadian oil sands, Chevron Corp. recently exiting the U.K. North Sea and Exxon Mobil Corp. putting its Norwegian assets up for sale. BP put its own Norwegian business into a joint venture in 2016.Meanwhile, they have been diverting cash to dividends and buybacks in order to keep investors onside – BP’s stock yields almost 7% – as well as directing more of their capex to shorter-cycle shale development.BP paid BHP Group Plc $10.5 billion in cash for its shale assets last year. Besides reducing BP’s leverage at a dicey time for oil prices, the Alaska deal can be seen as swapping out of an old, conventional position to help fund expansion in unconventional oil and gas. In that sense, selling Alaska throws the spotlight on these new assets where, like several of its peers, BP is trying to prove that the majors’ scale – which worked in such places as Alaska – can also be an advantage in shale.Alaska is viewed by some as a growth area, particularly – with grim irony – as climate change and the energy-dominance aspirations of the current U.S. administration open up more of it for potential development. However, as a sensitive, remote and challenging environment, it carries extra risks and costs for producers, including the potential for future administrations to restrict activity there again. The state’s oil boom truly began when the panic of the 1973 oil shock swept aside opposition to the construction of the Trans Alaska Pipeline. Its future from here will be shaped at least in part by the challenges of excess oil and associated emissions.Faced with this much change and the need to adapt, there really can be no sacred cash cows.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Based on BHP Group's (ASX:BHP) earnings update on 30 June 2019, analysts seem fairly confident, with profits predicted...
BHP Group posted its largest annual profit in five years and record full-year dividends, but its share price eased as the world's biggest miner flagged global economic headwinds that could hit demand for its key commodities, iron ore and copper.
Total investment in the Ruby Project, in which BHP holds a 68.5% stake, is about $500 million, the miner said in a statement. The remaining interest in the project is held by state-owned Heritage Petroleum and the National Gas Company of Trinidad and Tobago. "Ruby aligns well with our strategy of maximising value from our existing assets, bringing competitive near term value and volume growth," Geraldine Slattery, BHP President Operations Petroleum said.
Investing in large-cap energy titans can add value and diversity to your portfolio. Luckily, the stock market is packed full of big energy companies that pay top dividends and regularly outperform.
(Bloomberg Opinion) -- In 1986, Arthur C. Clarke’s “July 20, 2019: Life in the 21st Century” was published. Now, exactly half a century since man first landed on the moon, Clarke’s book has turned out to be fairly prescient. For the moon landing’s 50th anniversary, Rebecca Jones of Car and Driver magazine published a thoughtful examination of Clarke’s many transport-related predictions, one of which was far off the mark. “For 2019’s low, low prices of $70,000, with easy credit terms, a new car will offer a lot,” Clarke predicted. Today, according to Edmunds, the average transaction price for a new car in the U.S. is actually about half what Clarke expected: $37,342. So how did Clarke, a noted futurist and scientific visionary, manage to be so wrong? There are two ways, via inflation figures, to look at Clarke’s assumed “low, low price of $70,000” for a new car in 2019. The first is to use the actual inflation rate when Clarke was writing(2), apply it to every year since, and see what a new car would cost in 2019 by that calculation. According to the Houston Chronicle, the average new car cost $11,838 in 1985. Applying 1985’s actual inflation rate of 3.8% per year until 2019 gives a car cost of $42,071, 14% above 2019’s actual cost of $37,028. The second is to determine what inflation rate would be necessary to turn the $11,838 cost of a car in 1985 dollars into a $70,000 car in 2019 dollars. That inflation rate is 5.9% per year — higher than the actual rate in 1985. That 1985 rate of 5.9% is high by today’s standards, but it probably was not outside expectations in the early 1980s. Annual inflation peaked at 13.3% in 1979, and even as that rate plunged to 3.9% by 1984, we can forgive an author — even of science fiction — for thinking that serious inflation might return. In 1986, the trailing 10-year average inflation rate was 6.4%; the trailing five-year inflation rate was 3.3%. The inflation rate needed to arrive at an average price of $70,000 in 2019 was less than what the country had experienced, on average, in the 10 years prior to Clarke’s writing. It’s not just that inflation faded significantly as Clarke was writing. Cars themselves became a different element of the U.S. consumption basket. The U.S. Bureau of Labor Statistics has helpfully created an entire consumer price index for new cars. Compare it to the overall urban consumers’ CPI, and we see something significant. For decades, cars were above the CPI trend line relative to its 1982-1984 baseline; since 1987, cars have been below the general trend line and have hardly moved at all since the mid-1990s. At the same time that cars have decoupled from the rest of the urban consumer price index, their quality has also improved significantly. It’s something I wrote about last year, in comparing two small coupes with dedicated fan bases, one from the early 1980s and one from today. Today’s car is more powerful, faster, more comfortable, has a better entertainment system and is much safer — for relatively less money — than it was in Clarke’s time. Clarke makes one final supposition about a 2019 car: that it’ll be purchased “with easy credit terms.” On that, he was not wrong. U.S. Federal Reserve data on new car loans show that rates peaked at more than 17% in 1982. Rates are currently 5.35%, after bottoming out in November 2015 at 4%. As Liz McCormick wrote this week in Bloomberg Businessweek, a decade of low interest rates is changing everything. Weekend readingA prototype of Ford’s electric F-150 pickup towed more than 1.25 million pounds of rail cars and cargo. In defiance of the White House, four major automakers have reached a compromise with California regulators and will increase the fuel efficiency of their fleets through 2026. Was the automotive era a terrible mistake? Amtrak will launch a nonstop Acela service between New York and Washington. At 2 hours, 35 minutes, it will be five minutes slower than the fastest Metroliner service traveling the same route in 1969. BHP Group Ltd. Chief Executive Officer Andrew Mackenzie lays out the case for evolving the company’s approach to climate change. Ratings agency Moody’s has purchased a controlling stake in California-based climate risk measurement firm Four Twenty Seven. Leonid Bershidsky says that Moody’s buy “could signify the beginning of a major shift in how markets price risk related to climate change.” Tracy Alloway on how “addbacks and debt financing to engineer artificial growth in a sluggish economic environment is actually representative of the entire market.” Hipcamp has raised $25 million, led by Andreessen Horowitz, “to fulfill our mission to get more people outside.” The Human Brain Project hasn’t lived up to its promise. Profile of Raj Chetty, the economist who would fix the American dream. Get Sparklines delivered to your inbox. Sign up here. And subscribe to Bloomberg All Access and get much, much more. You’ll receive our unmatched global news coverage and two in-depth daily newsletters, the Bloomberg Open and the Bloomberg Close.(1) I’m assuming that his book, published in mid-1986, was being written a year earlier in 1985.To contact the author of this story: Nathaniel Bullard at firstname.lastname@example.orgTo contact the editor responsible for this story: Brooke Sample at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nathaniel Bullard is a BloombergNEF energy analyst, covering technology and business model innovation and system-wide resource transitions.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
China consumes more than 70% of seaborne-traded iron ore. As a result, iron ore investors should track China's demand and outlook. Today, China released its trade data for June. China's iron ore imports were 75.18 million tons in June—9.7% lower YoY (year-over-year) and 10.2% lower month-over-month. In June, China's imports fell to the lowest level […]