Guess BHP's HY16 profit and win a prize, page-80

I am surprised few seemed to be commenting on the emerging new philosophy of paying less dividend to shareholders and buying assets, something BHP has made a continual mess at (Ravensthrope, Shale gas, etc). Next we will see Kloppers back !

"...buy rather than build is more attractive"? Not if your BHP. But the past is not a guide to the future of course.

BHP chairman Jac Nasser said commodity markets would face a "prolonged" period of weak commodity prices and high volatility, and he said a dividend payout ratio would be a more appropriate way to calculate dividends in the future.
Shareholders will now be paid at least 50 per cent of underlying attributable profits for each half, and the BHP board will retain the power to increase the dividend further if they see fit.
The change of dividend policy has reduced BHP's total spend on interim dividends from $US3.29 billion in February 2015 to just $US854 million this year, and contributed to the $US10.6 billion cash and cash equivalents that the company has on hand at the moment.
BHP chief executive Andrew Mackenzie said that cash war chest could be spent on growth, including buying assets from distressed rivals.
"It means we have more money to think about acquisitions as tier one assets become available," he said.
"This is an environment where in many respects, buy rather than build is more attractive."


Read more: http://www.smh.com.au/business/mining-and-resources/an-acquisitive-bhp-billiton-has-cut-dividends-to-boost-its-ability-to-buy-assets-20160223-gn1g2u.html#ixzz411xazKuI
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