BHP posts a $US6 billion loss, slashes dividend | Business Insider

From Chris Pash:

BHP posted a massive half year loss of $US5.669 billion, the big miner’s first in 15 years, cuts its dividend by more than half and reorganised its management to create a leaner and more agile business.

Revenue was down 37% to $US15.71 as falling commodity prices continue to cut into the business.

BHP declared a fully franked dividend of just 16 US cents, a sharp fall from the 62 cents of the previous year, breaking its progressive policy of keeping payouts the same or higher…..

CEO Andrew Mackenzie says the new dividend policy is part of a broader strategy to help BHP manage volatility.“Slower growth in China and the disruption of OPEC have resulted in lower prices than expected,” he says.

…..Mackenzie expects crude oil prices to remain weak in the short term as high inventory levels weigh on an oversupplied market and rising OPEC exports offset production declines in the US.

“The long-term outlook remains healthy,” he says.

BHP’s outlook for Chinese steel production is unchanged, peaking between 935 million tonnes and 985 million tonnes in the middle of the next decade, as China continues to urbanise and mature its manufacturing capability. “The iron ore price will likely remain low, constrained by weak demand and abundant seaborne iron ore supply. Over time, additional low-cost seaborne supply will continue to displace higher-cost supply, and we expect productivity gains will continue to be an industry feature.”

Source: BHP posts a $US6 billion loss, slashes dividend | Business Insider