21st Dec 2015 06:45
LONDON (Alliance News) - BHP Billiton PLC is preparing to cut its dividend in the new year, according to the Sunday Times, which reported that the miner will become the latest in the sector to take the axe to shareholder payouts.
Citing senior City sources, the report said that plunging oil prices were "almost certain to decide the issue" for the FTSE 100 miner.
The report said that although BHP is better known for its mines, it is also a big producer of oil, with fields and pipelines in Australia, the Gulf of Mexico, Algeria, Pakistan and Trinidad and Tobago.
In addition, the report said BHP's directors are "eager to keep" financial flexibility so they can acquire attractive assets in the event they become available for sale, as other commodities companies assess their balance sheets.
http://www.thesundaytimes.co.uk/sto/business/Industry/article1647374.ece
BHP would be following mining peers Glencore PLC and Anglo American PLC in making the decision to cut its dividend.
By Samuel Agini; [email protected]; @samuelagini
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