BHP gives billions back to shareholders – The Wall Street Journal

EDINBURGH — BHP has announced plans to buy back shares. This is part of a trend of major mining groups repurchasing stock, which Glencore boss Ivan Glasenberg has reportedly said is the best investment for mining companies. The sector is trading at a discount to the wider market, with concerns about slowing global growth and the US-China trade war keeping a lid on enthusiasm for mining stocks. BHP is funding its plan with the proceeds of the sale of onshore US oil and gas fields to BP and Merit Energy Company in July for a total of $10.8bn, a move that the Financial Times described as BHP drawing a line under a disastrous foray into the shale industry that sullied the company's reputation as a responsible steward of capital. "Big miners are under pressure from shareholders to boost investor returns, having blown billions of dollars on ambitious projects and dealmaking during the decade-long commodities boom that ended in 2014 with a brutal downturn in prices. Other companies including Glencore, Vale and Rio Tinto have cranked up dividend payments and are also repurchasing shares," says the FT. – Jackie Cameron

BHP to Return $10.4 Billion to Shareholders

By Rhiannon Hoyle