BHP Billiton To Hold Back On Buyback After Petrohawk Buy
August 24 2011 - 4:58AM
Dow Jones News
BHP Billiton Ltd. (BHP) is stalling on any further purchases of
its shares to protect its credit rating in the wake of this month's
US$12.1 billion acquisition of U.S. shale gas company Petrohawk
Energy Corp. (HK), Chief Executive Marius Kloppers said
Wednesday.
Melbourne-based BHP says the Petrohawk deal will push up gearing
levels, and absorb any surplus cash being thrown off by a global
boom in commodities in the near term.
BHP continues to prioritize production volume growth, its
balance sheet strength and shareholder dividends before looking to
return surplus cash via buybacks, Kloppers told reporters on a
conference call after the Anglo-Australian mining company reported
an 86% increase in full-year net profit.
Mining companies have been under pressure from shareholders to
hand over a greater share of the cash generated by strong demand
for key commodities, particularly iron ore, coal and copper needed
in rapidly industrializing China, India and other parts of
Asia.
Rio Tinto PLC (RIO), the world's second-largest iron ore miner
by output, said early this month that it planned to increase its
share buyback to US$7 billion, from US$5 billion, and complete the
program by the end of March. BHP in late June completed the
repurchase of US$10 billion in shares, six months ahead of
schedule.
Kloppers said the company's pro forma gearing ratio is expected
to grow to about 27% following the integration of Petrohawk. Net
gearing at the end of the year to June 30 was 9%.
BHP in its earnings statement said confidence in the long-term
outlook for commodities and the buyback of shares enabled its board
to declare a rebased dividend, with a final dividend of 55 cents.
The payout to shareholders for the year as a whole is US$1.01 per
share against 87 cents the year before.
The company said it has repurchased US$22.6 billion in shares
since 2004, representing 15% of then issued capital.
-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094;
robb.stewart@dowjones.com
Order free Annual Report for BHP Billiton plc
Visit http://djnweurope.ar.wilink.com/?ticker=GB0000566504 or
call +44 (0)208 391 6028
Halcon Resources (NYSE:HK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Halcon Resources (NYSE:HK)
Historical Stock Chart
From Apr 2023 to Apr 2024
