BHP has pretty much been flying under the tariff radar for most products sold to China. UBS has issued a report on the impact on BHP, and it is pretty insignificant since most products are already low or tariff-free.
No. Because of BHP's large volumes, the cost to hedge would be prohibitive and counter productive. BHP is stronger than potential counter-parties. From BHP's annual report:
We seek to maintain a solid ‘A’ credit rating,
supported by our portfolio risk management strategy.
As part of this strategy, commodity prices and
currency exchange rates are not hedged, and
wherever possible we take the prevailing market
price. We use Cash Flow at Risk analysis to monitor
volatilities and key financial ratios. Credit limits and
review processes are required to be established for all
customers and financial counterparties. The Financial
Risk Management Committee oversees these as
described in sections 3.15 and 3.16. Note 29
‘Financial risk management’ to the Financial
Statements outlines our financial risk management
About 10%, or $6. for the same share of the combined companies paying the same dividend. Yield of 4.6% instead of 4.1% for no difference in risk. No one knows for sure why the discount..
From MarketWatch: Among major stock moves, mining shares advanced as most metals prices headed north. Shares of Rio Tinto PLC RIO, +2.36% RIO, +1.17% RIO, +2.55% picked up 2.8%, Glencore PLC GLEN, +1.85% GLCNF, +0.60% added 2.7% and BHP Billiton PLC BLT, +2.95% BHP, +2.76% BHP, +2.10% gained 2.4%.
The Proposal says that no election date deadline has been set, and that you will receive an election form and have five days to submit it. The meeting is 11/20/14.
What's the mystery? Don't see what difference quarterly vs semi-annual reporting makes? It's a commodity cyclical stock. It just so happens that every once in a while all the commodity prices go down together. Iron ore, coal, copper, oil, gold, silver, etc. all down at once. That's why BHP Billiton has a stated stable dividend policy. Prospects are still good long-term. Staying in and collecting the divvies.
The proposal is outlined under the "Investor" tab on the BHP Billiton website. O&G is not included in the spin off and stays in the basic dual listed company, i.e., BHP and BBL..
Iron ore price was up 5% this week, so cycle may have turned. China is slowing but still growing at 6%, a big customer of BHP. Real buying op this week IMO. Did you know that BBL is the same [dual listed] company, but at a discount?
Why so much down? Certainly not due to the company's fundamentals. Dividend at 4.5% and earnings per share two times the divvie. Expect 2015 net income at US$14bn. Why down? Because the market is irrational. OK, oil, iron ore, coal, copper, gold, silver (commoidities are BHP's bread and butter) are all down; and the overall market is down, but still BHP SP being down 23% does not make sense.
If you draw a Yahoo graph of the Australian dollar AUD=X vs WBK, the WBK ADR share value runs in the opposite direction of the US$ value of Australian dollar. The A$ has fallen about 8% the last month and WBK has fallen 10%. Knee-Jerk Trader/Technical recommendation IMO.
The Australian economy looks good to me, and the falling A$ is good for their export commodity economy. Love the secure dividend, can't find those in many US stocks. Long for many years and holding.
I look in once in a while, but not many posters. One of my favorite holdings. Got out of VBTLX in when interest rates got so low. Like the book, and the low fees. Will stay in as long as interest rates stay low and bonds relatively risky (for me, a buy and hold conservative investor interested in steady income more than growth and trading/playing the market).
BHP's stated, long-term dividend policy* quoted below is to maintain or increase the dividend rather than have large swings. I doubt you will see a decrease in the dividend just because the market currently undervalues these shares. The market is not rational.
BHP Billiton 2015 net earnings estimated to be US$14 billion or about US$2.60 per ordinary share, $5.20 per ADR. Dividend is not in jeopardy.
*"BHP Billiton has a progressive dividend policy. The aim of this policy is to steadily increase, or at least maintain our base dividend in US dollars terms at each half yearly payment."
A relatively small amount of sales and production compared to XOM global operations. Only produce about 200,000 bbls/day and 200 million cubic feet of gas/day in Russia. Assets would be written off for tax reduction. This plus probable delay in exploiting recent agreements with Russia in the arctic (very expensive), and expansion of current operations are at risk. Russia has also invested in XOM operations which would become XOM's if Russia seized Russian assets.
Both BBL and BHP ADR holders in the US will receive NewCo ADR's. BHP Billiton Ltd and BHP Billiton Plc Group operate as if merged into one company, so the shares are equivalent. The underlying shares [BHP.AX and BLT.L] and their ADR's are equivalent and will receive the same distribution of NewCo ADR's.
I asked BHP Investor relations and here is what they said in an email to me: "BHP Billiton Plc shareholders – including those holding underlying shares through American Depositary Receipts (BBL ADRs) – would receive an in-specie distribution of shares in the new listed company on a pro-rata basis, as well as retaining their existing shares in the Group. Please note as well that while it is intended that the new entity would be an Australian incorporated company listed on the Australian Securities Exchange with an inward secondary listing on the Johannesburg Stock Exchange, it is also proposed that a sponsored, Level 1 ADR program would be established, with those ADRs traded in the United States over-the-counter market."
VWINX and VWIAX have the same portfolio, but VWIAX (which hasn't been in existence as long) is Vanguard's Admiral version for large investors and has a lower expense fee than VWINX. The early 1980's was when interest rates were 18-20%, which depresses bond values.
$0.62 per underlying share, up from $0.59; $1.24 per ADR, up from $1.18. Up 4% for the year. Payable 23 Sept. All divi info and hisotry available on BHPBilliton website, Investor tab.
Just lurking and watching the interplay with VBTLX as interest rate fluctuate. Not as much reverse correlation as I expected. Was long VBTLX until couple years ago, now long VWIAX
I own both BBL and BHP for many years. BHP Billiton Ltd does not withhold tax. Australian tax code does not tax dividends to the extent the corporation pays tax on income. BHP Billiton Ltd Australian shareholders' dividends are "franked". There is no withholding on my BHP ADR's. As you say, no one can explain the discount as the ADR's are equivalent, same dividend, same vote, etc.