The week ahead: BHP Billiton, Persimmon, Premier Oil
17th August 2018 16:30
by Graeme Evans from interactive investor
BHP Billiton, the world's biggest mining company, tops the bill this week amid expectations it will return cash to shareholders alongside its annual results. Graeme Evans reports.
Monday 20 August
Trading statement: TBC Bank
AGM/EGM: Northern Bear
Tuesday 21 August
Trading statements: BHP Billiton, Persimmon, Polymetal International, Wood
Big shareholder returns are expected alongside BHP Billiton's annual results this week, with the world’s biggest mining company having just agreed to sell its onshore oil and gas assets to BP for US$10.8 billion.
BHP CEO Andrew Mackenzie said last month: "Our priority with this transaction is to maximise value and returns to shareholders."
Even before the deal, analysts at UBS had been looking for a $2-3 billion share buy-back with the results. They said the debt reduction efforts of BHP and rival Rio Tinto meant the pair were in a position to return cash equivalent to 15% of market cap over the next 18 months.
UBS recently raised its price targets on BHP Billiton and Rio, based in part on forecasts for continued rises in the 2018/19 prices for coal, aluminium and nickel. Iron ore and copper markets were also expected to hold firm.
That's despite fears over the impact of trade wars involving the US and China, a factor that has caused a sell-off in mining stock shares. BHP Billiton is also dealing with the Samarco dam collapse in Brazil, having just paid $50 million to settle a class action from American investors in relation to its Vale joint venture.
Wednesday 22 August
Trading statements: Costain, Hansteen Holdings, Headlam, Sportech
AGM/EGM: APQ Global, Paragon Entertainment
Thursday 23 August
Trading statements: CRH, John Laing, Macfarlane, One Savings Bank, Playtech, Premier Oil
AGMs/EGMs: D4T4 Solutions, The Fulham Shore
Friday 24 August
Trading statements: Computacenter, Henry Boot, Kingspan
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