BHP Billiton is to offload its US shale oil mechanics after shareholder pressure
Activist hedge fund investor Elliott Advisors has been pushing for a shake-up at the world’s biggest miner and has increased its stake to 5 per cent.
FTSE 100 Billiton affirmed it is “actively pursuing options to exit” as annual underlying profit take 454 per cent to $6.73 billion (£5.24 billion) after a recoil in industrial commodities.
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Net debt was slashed by close to $10 billion.
We are actively pursuing options to exit these assets for value
Chief Andrew Mackenzie indicated: “This strong momentum will be carried into the 2018 economic year, with volume growth of 7 per cent and further productivity gets expected.
“Our relentless focus on cash flow, capital discipline and value beginning should allow us to significantly increase our return on capital by the 2022 economic year.”
BHP Billiton’s net debt was slashed by nearly $10 billion
BHP turned in a statement to the media: “We have determined that our onshore U.S. assets are non-core and we are actively pursuing alternatives to exit these assets for value.
“In the meantime, we will complete proficiently trials, acreage swaps and assess mid-stream solutions to increase the value, profitability and marketability of our acreage.”