The RDS A shares are registered in the Netherlands for tax purposes and Dutch taxes are withheld on RDS A shares. The Company is domiciled in the UK and the RDS B shares do not have any tax withheld, hence the difference in share price. How you file your taxes depends on whether you can take a foreign tax credit for the "A" dividends on your US tax return; or pay US dividend tax on the "B" dividends.
My guess flat. Fiscal year ended 30 Sept, so first half report ends 31 March, out about a month later. IMO (long term buy and hold investor) WestPac is a pretty stable, dependable slow growing bank. They make a lot of home loans and the Australian economy is good. The US share price has suffered as the A$ declined from .90 to .75 US, but will recover if A$ rises or US$ weakens. I think the dividend is solid. Long-term long
Forgot that I also said the Holders of the USA ADR's BBL and BHP, are expected to receive new ADR's for South32 that will list on the New York Stock Exchange. So just like a real spinoff to shareholders.
I posted this yesterday, and hinted at where the full text could be found on line, but Yahoo zapped it. Gee, I wonder where how you could bring up bhpbillion Investor Tab? And once you found the Investor Tab on their site, how could I visit the page named "Demerger Update"?
Here is the clip from the article I posted yesterday:
A final Board decision on the proposed demerger will be made once all necessary third party approvals are secured on satisfactory terms. On this basis, we expect to release all shareholder documentation with full details of the proposed demerger in March 2015, with a shareholder vote taking place in May.
BHP Billiton Group pays dividends twice a year. Fiscal year is July 1 to June 30. Therefor the "2015 interim" dividend is for the half year July 1 to Dec 31. They declared US$.62 per ordinary (common) underlying share, or US$1.24 per US ADR [= two ordinary shares] payable 31 March 2015. Familypiece is probably right on the "final" dividend for the August dividend.
Writedowns are bookeeping to adjust carried value of an asset on the books, like depreciation, that only reduce earnings and income tax, but does not reduce cash flow. Not good, I agree, but should not affect dividend policy. We'll see.
Not so sure. True, the market is bigger in UK than Oz. BHP.AX is about 10% of entire Oz market, small percent of UK mkt. Avg Vol/day in UK BLT.L is 8 million v 8 million shares in Oz BHP.AX. Avg Vol in ADR's 2:1 BHP v BBL.
I believe the delta is due to a combination of time differences, foreign exchange factors, and mis-perception of income tax effects in UK and Oz. Brits pay income tax on divies in UK, but divies are not taxed to individuals in Oz to the extent corporate income tax is paid. There is no withholding from divies paid to US ADR holders (each receive the same US dollar amount) who pay 15% divie tax.
The UK GBP = 2 AUD. The discount on the underlying shares is minimal: BLT.L is 15.70 GBP, times two = 31.40 AUD. BHP.AX is A$32.17. There is also the time difference in market openings and closings. The Oz market usually patterns the closing US market; and the UK market does as well: 4pm Monday in NYC = 9 am Tuesday AEDT in Sydney (trust me). 4pm Tuesday in Sydney is 5am Tuesday in London. 4pm Tuesday in London is 11am in New York. You can never catch up to the timing and forex changes. There is also the mystery of the Dual Listed nature of the Beast.
The two companies BLT.L (formerly Billiton Plc) and BHP.AX (Formerly BHP Ltd) operate on a combined basis (since 2001) as if merged, same employees, assets, management, and board of directors. Accounting is consolidated in US$ as if one company. The UK Plc company (two shares = one US ADR BBL) trades on UK exchange; and the Aussie Ltd company (two shares = one US ADR BHP). No one can explain why the UK versions trade at about a 10% disocunt to the Ltd versions. Both get the same equivalent US$ dividend (in local currency) and vote. For financials best to go to BHP Billiton website as Yahoo and other reporting services do not always show the dual listed structure financials, EPS, PE, Market Cap, etc., accurately.
Why sell now at the bottom IMO? I don't agree. Don't see going much lower. Not a fan of sell low and buy high. Essential commodities are cyclical. They always come back. Long-term Long
Oil doesn't just run out of the ground and you have to put it somewhere or lose it. And it would be stupid to pump (produce) oil and store it in tanks when you can just leave it in the ground (reservoirs) and produce it later. As long as oil production is cash positive, keep producing. They are reducing the new well-drilling program, deferring some projects and slowing others to conserve cash (which leaves the oil in place in the ground. BHP is diversified and a low-cost producer of the commodities they produce. They are still making profits on their commodities, and generating positive cash flows. Because of their low debt and conservative dividend policy (maintain or slightly increase it each year), the dividend is secure, making the yield and stock a great bargain at these prices. Yes, I am loooong.
Typical for markets to over-react to negative news. The Fund's holdings declined more than justified. Buying op, esp now w/ Euro Bank stimulus. I wonder tho if the banks who sell their securities to the E Bank won't use the cash to buy US Treasuries rather than make more loans???
Big drop in ADR price 12/15/14 was due to $2.195 stock dividend payable in Jan 2015. When the Swiss Franc was set free from the Euro, the Swiss Franc went up 16% vs US$. Ignoring that the Swiss may have lower export sales (which I doubt) shouldn't the US ADR's go up16%?
Either a misprint, or an idiotic over-reaction to low commodity prices. They may be confusing the underlying shares [BHP.AX] with the ADR's. Many rating agencies and journo's do not understand the dual listed nature of this company, esp as they relate to respective ADR's [BHP and BBL]. UBS target BHP ADR price $64, and earnings estimate as of 4 Dec 2014 for the combined companies [BHP + BBL = 5.3 bn shares outstanding] was US$10 to 12 billion. That's US$3.78 to $4.52 per ADR [which represent two underlying shares]. Gives you a PE of 10.6 to 8.5. Where do I sign up for $19 dollar ADR's???
From BHP Billiton web site:
"What is the difference between BHP Billiton Limited and BHP Billiton Plc?
BHP Billiton was formed in June 2001 from the merger of BHP Limited (an Australian listed company) and Billiton Plc (a UK listed company). The merger was effected by way of a dual listed companies (DLC) structure, meaning that although the companies technically continue to be separate legal entities (now renamed BHP Billiton Limited and BHP Billiton Plc) with separate share listings and share registers, they are managed and run as a single economic entity. The companies have a common Board of Directors and management team. Shareholders in BHP Billiton Limited and BHP Billiton Plc have equal economic and voting rights, as if they held shares in a single company."
You must not follow BHP Billiton very closely. They always have about US$15 billion of long-term projects underway aimed at new/increased production, debottlenecking, cost reduction, etc. Most are billion dollar plus projects that take years to discover, design, build and start up. You can't start-stop this flow of major projects. You can slow them but each year some of them are completed, come on line, adding value to the company. You can view these projects in their Quarterly Operational Review on their web site. There is also a Presentation to Analysts explaining how they hope to achieve these goals. The low commodity prices is expected to cut net income 10% FY2015.