Oil Rally Aiding BHP Billiton Shale Sale, Says CEO
15 Mayo 2018 - 9:39AM
Noticias Dow Jones
By Rhiannon Hoyle
Higher oil prices and U.S. tax reform are encouraging interest
in the shale operations BHP Billiton is looking to sell, and bids
are expected from suitors in the coming weeks, Chief Executive
Andrew Mackenzie said Tuesday.
BHP, the world's largest listed miner by market value, said last
year it planned to offload its U.S. onshore energy business, and
Mr. Mackenzie said Tuesday the company was making good progress
with its exit.
"We have timed it well. The environment is supportive," he said
at an industry conference in Florida.
Oil trades at a multiyear high, underpinned by signs that major
oil producers are committed to reducing supply. Turmoil in the
Middle East and U.S. trade sanctions against major oil producer
Iran have also supported oil prices.
BHP's decision to put the business up for sale followed months
of campaigning by Elliott, the New York hedge fund that questioned
the fit of its shale business with its main units that mine iron
ore, copper and other minerals. The company holds more than 838,000
acres in shale-rich U.S. regions.
Mr. Mackenzie also said higher prices for commodities including
coal and iron ore increased BHP's return on capital employed to
roughly 14% from about 2% two years ago.
He said BHP still aimed to achieve a further $2 billion in
productivity gains by mid-2019, at a time when rising costs are
expected to start pressuring margins. The company has recorded
roughly $12 billion in improvements since 2012, when falling prices
sparked a race to reduce costs and make mines more efficient.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
May 15, 2018 10:24 ET (14:24 GMT)
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