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BHP BILLITON LIMITED (BHP)

BHP BILLITON LIMITED (BHP)

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General Information
Company Name: BHP Billiton Limited
Stock Code: BHP
Website: www.bhpbilliton.com
GICS Sub-Industry: Diversified Metals & Mining
Market Cap ($M): 121,723
Equiv. Shares (M): 3,212

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 37.900 $ 37.960 $ 38.190 $ 37.810 $ 38.210 7,697,940 $ -0.310  -0.811 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 2nd Feb 2012
12 Month Target Price (average): $47.183
Brokers Surveyed: 8

Company Overview

Business Description:
BHP Billiton Limited (BHP) is a diversified resources group with a global portfolio of quality assets. Core activities comprise of mining, exploration, production and distribution of minerals, mineral products and petroleum.

Strategy Analysis:
BHP wants to be the supplier of choice to its end-use customers. Its strategy is three-pronged: build on its diverse reserves base and ensure that best practices are shared quickly across its operations; maintain a steady pipeline of greenfield projects for internal growth; and help increase its pipeline by staying close to its customers. BHP Billiton reported NPAT up 85.9% to US$23.65bn for the year ended 30 June 2011. Revenues from ordinary activities were US$71.74bn, up 35.9% from last year. Diluted EPS was 426.9 US cents compared to 227.8 US cents last year. Net operating cash flow was US$30.08bn compared to US$16.89bn last year. The final dividend declared was 55 US cents, taking the full year dividend to 101 US cents compared with 87 US cents last year. Underlying EBITDA and Attributable profit (excluding exceptional items) increased by 51% to US$37.1bn and 74% to US$21.7bn respectively, while Underlying return on capital, excluding investment associated with projects not yet in production, increased to 50%.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 25,188.2 471.8 -4.4 8.0 164.0 4.3 100.0
2012  F 26,342.4 493.4 23.5 7.7 121.1 3.2 100.0
2011  A 21,998.1 399.4 57.5 10.8 102.9 2.4 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
Atlas Iron (AGO) $2,962 M -- -0.1504 0.3812 12.3232 14.5048 10.5013 0.0091 0.0097 0.0096
BHP Billiton (BHP) $122,719 M 0.3914 0.0692 0.1948 10.4826 9.8037 8.2054 0.0246 0.0309 0.0329
Iluka Resources (ILU) $7,599 M -- 12.8318 1.1768 210.5568 15.2227 6.9931 0.0044 0.0344 0.0731
Rio Tinto (RIO) $31,505 M 0.7519 0.2220 0.0027 10.3368 8.4589 8.4357 0.0147 0.0177 0.0202
Sims Metal Management (SGM) $3,154 M 0.4412 0.1511 0.4209 16.4802 14.3164 10.0756 0.0307 0.0371 0.0433

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
BHP 0.80 9.98 3.82 0.77 3.14
Market 0.82 12.5 1.38 1.18 1.90
Sector 0.63 12.4 1.31 0.66 20.8

Directors
Name Position Start Date
Mr Marius Kloppers Chief Executive Officer 01 January 2006
Mr Jacques Nasser Non-Executive Chairman 06 June 2006
Ms Carolyn Judith Hewson Non-Executive Director 31 March 2010
Mr David Alexander Crawford Non-Executive Director 01 May 1994
Dr David Jenkins Non-Executive Director 01 March 2000
Dr John Michael Schubert Non-Executive Director 01 June 2000
Mr Malcolm W Broomhead Non-Executive Director 31 March 2010
Mr Wayne W Murdy Non-Executive Director 18 June 2009
Dr John Buchanan Non-Executive Director 01 February 2003
Mr Carlos Cordeiro Non-Executive Director 03 February 2005
Mr Lindsay Philip Maxsted Non-Executive Director 23 March 2011
Keith Rumble Non-Executive Director 01 September 2008
Ms Shriti Vadera Non-Executive Director 01 January 2011

Management
Name Position
Nicola Evans Deputy Company Secretary
Jane McAloon Group Company Secretary
Alberto Calderon Group Executive and Chief Commercial Officer
Marcus Randolph Group Executive and Chief Executive Ferrous and Coal
Andrew Mackenzie Group Executive and Chief Executive Non-Ferrous
J Michael Yeager Group Executive and Chief Executive Petroleum
Alex Vanselow Group Executive and Chief Financial Officer
Karen Wood Group Executive and Chief People and Public Affairs Officer

Substantial Shareholders
Holding Name
397,004,907 (15.81%) BlackRock Investment Management (Australia) Limited (formerly Barclays Global Investors Australia)

Calendar of Events
Date Event
16 January 2013 Report (Quarterly)
17 October 2012 Report (Quarterly)
19 September 2012 Report (Annual)
22 August 2012 Report (Prelim)
18 July 2012 Report (Quarterly)
18 April 2012 Report (Quarterly)
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