Understanding the change in the BHP dividend

Peter Beaven the CFO of BHP Billiton recently delivered a short briefing to the Morgans network. In his presentation he provides an overview of the new dividend policy. The thrust of his commentary is that the oil price caught them by surprise and that the company has changed it's view on the outlook for the global economy. Balance sheet preservation was the primary motivator and the new policy (in theory) should see capital returns to shareholders move more in tune with the commodity cycles.