BHP Group (ASX:BHP) shares tumble more than 7%, trades ex-dividend

Highlights

  • BHP Group (ASX:BHP) shared on 17 August 2021 that it will be paying a final dividend of AU$2.71 per share.
  • The Company had declared its financial results for full year ended 30 June 2021 as per which the Underlying EBITDA went up 69% to US$37.4 billion.
  • BHP also announced recently that it has agreed to merge with Woodside Petroleum (ASX:WPL) combining their oil and gas portfolios.

Trading ex-dividend, BHP Group Limited (ASX:BHP) dropped as much as 7.4% to trade at AU$41.71 per share at 11:40 AM on the ASX today.

The world’s biggest miner had shared on 17 August that it will be paying a final dividend of AU$2.71 per share. This is around US$10.1 billion in total.

As per the Refinitiv, BHP dividend yield stands at 8.99%.

It should be noted that the mining giant had posted its best annual results in nearly a decade, helped by rising iron ore prices.

Since the announcement of the results, the Company shares have lost around 19%.

Key highlights of the Financial results announcement made on 17 August 2021:

The Company declared its financial results for full year ended 30 June 2021.

  • The Underlying EBITDA went up 69% and stood at US$37.4 billion.
  • The EBITDA margin stood at 64%, up 11 percentage points.
  • The free cash flow went up a record 140% at US$19.4 billion.
  • Net debt came down 66% by US$4.1 billion.
  • Final dividend determined was 200 US cps, a payout ratio of 92%.
  • Return on Capital Employed went up 15.6%, by 32.5%.
  • Social investment accounted for US$175 million.

Besides, BHP has also been in news due to other reasons.

Woodside and BHP to make a global energy firm

BHP Group announced on 17 August 2021 that it has agreed with Woodside Petroleum Limited (ASX:WPL) to combine their respective oil and gas portfolios by an all-stock merger.

As per BHP, the transaction will be creating a global top 10 independent energy company by production.

After the Transaction is completely accomplished, BHP’s oil and gas business would coalesce with Woodside. Woodside would issue new shares to be distributed to BHP shareholders. The expanded Woodside would be owned 52% by existing Woodside shareholders and 48% by existing BHP shareholders.

It is touted that after the combination of these two high quality asset portfolios, the proposed merger would create the largest energy company listed on the ASX, with a global top 10 position in the LNG industry by production.

Bottomline

BHP has shared that its major focus now lies in decarbonising the world and targets at least 30% lower operational emissions by FY30 from FY20 level; with a goal of net zero emission by 2050.

Also, plans of investment in renewable power and desalination makes the Company worth watching for.

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