Angst on BHP misses and omissions to pass quickly

BHP’s retail shareholders are a happy bunch thanks to the 38% hike in interim dividend and the reintroduction of a dividend reinvestment program, writes Barry FitzGerald.

Angst on BHP misses and omissions to pass quickly Angst on BHP misses and omissions to pass quickly Angst on BHP misses and omissions to pass quickly Angst on BHP misses and omissions to pass quickly Angst on BHP misses and omissions to pass quickly

But their joy was not shared in the first-up reaction by institutional investors and analysts to BHP’s December half profit which while up by 25% to US$4.05 billion, fell short of expectations for $4.25 billion.

What’s more, there was no share buyback as many expected, controllable costs blew out by $800 million, and net debt came in higher than expected at $15.4 billion, albeit down from $16.3 billion at June 30 last year, and $20.05 billion a year ago.

Disappointment with the misses and omissions caused BHP’s shareprice to be hit hard in London overnight in the first pass assessment of Tuesday’s interim profit report. BHP’s London-listed shares fell a nasty 4.6%

But the angst will soon pass.