BHP Says It Won't Cut Payout
November 20 2015 - 3:02AM
Dow Jones News
(FROM THE WALL STREET JOURNAL 11/20/15)
By Stephen Bell
PERTH -- BHP Billiton Ltd. said it won't change its dividend
policy until February at the earliest, despite shareholder concerns
the mining company won't be able to sustain the payout given the
slump in global commodity prices.
Speaking at an annual general meeting of the world's largest
miner, BHP Chairman Jacques Nasser said shareholders have recently
questioned its long-held pledge to avoid dividend cuts, following
what he called "one of the most difficult" years in the company's
130-year history.
Earlier this month, a dam burst at an iron-ore mine operated by
Samarco Minerao SA, BHP's Brazilian joint venture with local mining
company Vale SA, leading to widespread flooding. BHP said Thursday
the disaster had so far caused 11 deaths, with eight people still
missing.
Mr. Nasser said BHP was proud of its decadelong policy of at
least holding its dividendsteady. But, he said,"the one thing we
never risk is the strength of the balance sheet through the
cycle."
The comments were less robust than those made in August by BHP
Chief Executive Andrew Mackenzie on whether the company would
continue to stand by its dividend policy.
"Over my dead body sounds a little strong, but it is almost
right," Mr. Mackenzie said then, referring to the possibility of a
dividend cut.
Asked on Thursday whether BHP was now prepared to soften its
stance,Mr. Mackenzie said, "you can expect us to say some things in
February -- now isn't the time to comment further."
BHP, which is listed in both Australia and the U.K., rose 3% in
Sydney and 2% in London.
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(END) Dow Jones Newswires
November 20, 2015 02:47 ET (07:47 GMT)
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