Mining giant BHP Billiton’s [ASX: BHP] roadmap plan for growing long-term stronger commodity prices and shareholder value has continued to be a success.
With an increase of 2.05% today, BHP’s consistency over the past couple of years is yet to show any signs of slowing down.
Where does BHP’s success come from?
BHP Chief Executive Officer, Andrew Mackenzie puts the success of BHP onto a number of key value drivers ranging from:
· Minimising costs by 15% (which has steered the company to stronger commodity prices while delivering a 30% increase in its base value).
· Approval of two major projects in oil and copper.
· Advancing their innovation and technology programs.
BHP also returned billions of dollars to its shareholders and replenished the company’s pipelines with new opportunities they can further pursue.
With new developments and pipelines, BHP can potentially increase the value of the company by 40%.
BHP will continue to target a strong value in its productivity gains by the end of the 2019 financial year.
MacKenzie believes that BHP is on a positive path for the future.
‘Our relentless pursuit of productivity, aided by a more agile and connected culture, will make sure we realise the full potential of our assets and capitalise on strong prices. On top of this, we have built an attractive suite of opportunities to drive further improvement. But, as always, we will remain disciplined in the allocation of capital with all investments weighed against cash returns to shareholders.
‘Our path is deliberate, and we remain firm in our resolve to increase value and returns’.
Everything points to future success with BHP, with their developed portfolio which addresses its best assets.
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