Mining giant BHP set to scrap dual listing in big shake-up
In a dramatic set of annual results, Henry is also combining BHP’s oil and gas assets with Australia’s Woodside and investing $5.7 billion in a Canadian potash project as BHP looks to focus its assets around global “mega-trends”.
The overhaul came as Melbourne-based BHP declared a final dividend of $2 a share, leading to a record return of $15.2 billion for shareholders across the financial year.
Profits from its operations jumped 80% to $25.9 billion, with strong volumes in Australian iron ore enabling BHP to take full advantage of the economic recovery. Today’s update sent BHP shares soaring 8% or 184.5p to 2,465p in the FTSE 100 index.
However, the company admitted that it plans for unification — under which its primary listing will be on the Australian Stock Exchange alongside a standard listing in London — did not currently qualify it for inclusion in the FTSE UK index Series.
A simplified corporate structure and unified share register will make it easier for BHP to separate the oil and gas business in the merger with Woodside next year.