BHP Billiton increases its 2015 interim dividend by 5.1% in dollar terms

DividendMax Ltd.

BHP Billiton increases its 2015 interim dividend by 5.1% in dollar terms

BHP Billiton half yearly results

Underlying EBIT of US$9.2 billion and an Underlying EBIT margin of 32% for the December 2014 half year results demonstrate the strength of BHP Billiton's strategy and the resilience of our portfolio in weaker markets.

Improved productivity and reduced capital expenditure allowed us to generate US$4.1 billion of free cash flow and strengthen the balance sheet despite lower prices.

We are extending our productivity gains faster than initially anticipated with US$2.4 billion achieved in the period. We expect over US$4.0 billion of productivity gains by the end of the 2017 financial year.

Our cost competitiveness continues to improve in all our major businesses, with unit cash costs reduced by 29% Western Australia Iron Ore, 15% at Queensland Coal, 13% at Escondida and 8% at Onshore US.

Reduced capital and exploration expenditure by 23% to US$6.4 billion in the half year and plan to invest a total of US$12.6 billion in the 2015 financial year and US$10.8 billion in the 2016 financial year.

Net debt at period end fell to US$24.9 billion for a gearing ratio of 22.4% and our A+ credit rating was recently reaffirmed.

The Group's interim dividend increased by 5% to 62 US cents per share, representing and Underlying payout ratio of 62%.

Should the proposed demerger of South32 be approved, we do not plan to rebase our progressive dividend downwards, implying a higher underlying payout ratio, and South32 will adopt its own dividend policy.

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