Diversified Resources Company BHP’s First Half Year Results
BHP is a world-leading resources company that extracts and processes minerals, oil and gas and their products are sold worldwide. Their global headquarters are in Melbourne, Australia. they operate under a Dual Listed Company structure with two parent companies (BHP Billiton Limited and BHP Billiton Plc) operated as if they were a single economic entity, which they refer to as BHP. They are run by a unified Board and management. Their stated corporate purpose is to create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources. They do this through their strategy: to own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity, geography and market.
They are among the world’s top producers of major commodities, including iron ore, metallurgical coal and copper. BHP also has substantial interests in oil, gas and energy coal.
Recently BHP reported results for the half year ended 31 December 2017.
BHP Chief Executive Officer, Andrew Mackenzie stated, “Higher commodity prices and a solid operating performance delivered free cash flow of US$4.9 billion. We used this cash to further reduce net debt and increase returns to shareholders through higher dividends. We are on track to deliver further productivity gains of US$2 billion by the end of the 2019 financial year as we secure improvements in both operating and capital productivity, aided by smarter technology application across our value chain. Our capital expenditure program remains focused on high-return, low-risk development opportunities in commodities where we see greatest potential. We remain firm in our resolve to maximise cash flow, maintain discipline and increase shareholder value and returns.”