BHP Group PLC update
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After the mining company BHP Billiton said it would unify its dual company structure and transfer its main stock market listing to Australia, the British blue chip FTSE 100 Index will lose its largest company.
The move was announced when BHP Billiton announced an agreement on Tuesday to exit the oil and gas business by merging this business with Australia’s Woodside Oil Company. Due to soaring commodity prices and soaring profits, the company also announced a record final dividend of $10.1 billion.
The unification of the company’s complex dual listing structure-including BHP Billiton, which is listed in Sydney and BHP Billiton, which is listed in London-plus its exit from oil is one of the most radical corporate changes in its history.
They are at a time when CEO Mike Henry is trying to shift BHP Billiton’s focus to metals such as copper and nickel and green products. The company also said on Tuesday that its board of directors has approved a plan to develop the $5.7 billion potash project Jansen in Canada.
Henry told the Financial Times that now is the right time to move to a simpler company structure to promote company development.
“One of the reasons I’m in the UK is that I don’t want people to misunderstand unity as any sign that we are withdrawing from the UK. We will still have a [secondary listing here],” Henry told the Financial Times.
“I hope shareholders can see the company’s wisdom in simplifying the company’s structure… and what this means for long-term growth.”
In early trading in London on Tuesday, BHP Billiton shares rose 8.3% to 24.71 pounds.
“The big news is Unity, and the 16% discount on the LSE line and ASX line transactions is expected to narrow, and we think this is driving the outstanding performance,” Berenberg analysts said of the stock price increase.
BHP Billiton is the company with the largest market capitalization on the London Stock Exchange, and the unification of its dual listing structure will involve the transfer of its main listing to the Australian Stock Exchange.
According to existing rules, BHP Billiton will be removed from the blue-chip FTSE 100 index, and due to its investment authorization, many British shareholders will be forced to sell. The merger will require shareholder approval.
According to BHP Billiton, according to an indicator tracked by analysts, the basic attributable profit for the year ended June was slightly more than US$17 billion, higher than the US$9 billion in the previous 12 months, and revenue was close to US$61 billion.
The strong cash generation allowed the company to declare a final dividend of US$2 per share, or US$10.1 billion, bringing its total annual dividend to US$15 billion. Last year, BHP Billiton announced a total dividend of $1.20 per share, or $6.1 billion.
Net debt was US$4.1 billion, lower than the US$11.8 billion at the end of 2020. Steelmaking commodities, iron ore and copper, are the main drivers of profit.
BHP Billiton is the last major miner to report results Harvest season Because the industry has become one of the biggest beneficiaries of the rapid recovery of the Chinese economy from the coronavirus pandemic. Stimulus measures in large economies have also helped drive strong demand for commodities, leading to sharp price increases.
This BHP Billiton’s oil business merges with Woodside What followed was pressure on large mining companies to reduce their exposure to fossil fuels and to align with the goals of the Paris climate agreement. BHP Billiton is also looking for a buyer for its last power coal mine.
“The merger of our oil business with Woodside will create a top 10 independent energy company in the world, unlocking value for BHP Billiton shareholders, including through synergies, and a stronger and more flexible combined business that will be more capable of The navigation process continues to add value to the energy transition,” Henry said.