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BHP Billiton slashes dividend, drops payout pledge
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Loading...Top global miner BHP Billiton slashed its interim dividend by 75 percent, cutting it for the first time since 1988 following a collapse in prices for oil, iron ore, coal and other raw materials.
The world's biggest diversified miner reported a net loss of $5.67 billion for the first half of the 2016 financial year, its first loss in more than 16 year, and cut its interim dividend to 16 cents. Analysts had expected a dividend of 31 cents.
BHP also ditched its progressive dividend policy, which held that it would pay a steady or higher dividend at each half-year result, to protect its solid 'A' credit rating, the highest in the decimated mining sector.
"Slower growth in China and the disruption of OPEC have resulted in lower prices than expected," BHP Chief Executive Andrew Mackenzie said in a statement.
"Our new dividend policy and transparent capital allocation framework are part of a broader strategy to help BHP Billiton manage volatility," he said.
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