As BHP hoses cash to foreigners, do recall it's your kid's dough

UBS wraps it up nicely for BHP:

BHP has today announced that it will return the full US$10.4bn net proceeds from shale to shareholders almost immediately through a combination of an off-market buyback in Nov/Dec 18 (US$5.2bn) and a special dividend of US$5.2bn (~US$1.01ps) payable in January 2019.

Further returns expected at the half year result in Feb 19 BHP in August 2018 at its full year result said that FCF in FY 19 at spot prices of the day was ~US$9bn. With ~80% of this expected to be paid out as an ordinary dividend, this implies there is head room for an on-market buy-back. We have incorporated a US$3bn pa on-market buy-back in our forward estimates from Mar 19 and expect an announcement of such at the half year result in Feb 19.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

Share

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

As BHP hoses cash to foreigners, do recall it’s your kid’s dough