BHP Billiton: A very solid result, fundamentally positive, without being thrilling

BHP Billiton: A very solid result, fundamentally positive, without being thrilling. The most interesting aspect of BHP's result was the reduction in forecast capex over FY15-16 by what we think is a combined total of around US$6bn. Clearly this capex has given way to sustain the groups progressive dividend policy and credit rating which BHP recently re-committed to preserving. Falling commodity prices have forced BHP to put its money where its mouth is. We think that fundamental investors will see this restraint as positive, such that BHP does not continue to expand into falling markets. Similar trends across the industry will curb supply side growth. Robust demand growth will then help to re-balance oversupplied commodity markets and lift prices. This is what the marginal investors need to see to re-enter BHP again. Overall, a very solid result, fundamentally positive, without being thrilling. Visit the blog for comment on results from HSU, VRT, QBE,QUB, SXY, FLT, OSH, WTP: (VIEW LINK)


The Livewire Equities feed brings you a range of insights that relate to Australian equities

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.