BHP Billiton has remained financially strong, despite falling prices across all of its commodities. The company's main protective action has been to slash capital spend. Its company-wide budget for FY 2016 was down 36% from FY 2015, and its petroleum spend fell 50%, with most of the cuts levied at its unconventional business. In a move to protect its A credit rating - one of the highest in the mining sector - BHP also replaced its progressive dividend policy with one more closely linked to underlying profit, freeing up a further US$4.8 billion of capital.
The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.
This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.
This Upstream Oil and Gas Company report offers thought-provoking insight into corporate financial health, investment strategy and operational outlook supported by our proprietary asset data and energy research experts.
Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.
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Company report | Aug 2016
BHP Billiton corporate report
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