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)