Visitors Now:
Total Visits:
Total Stories:
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Why BHP Billiton gets the nod over Rio Tinto – blue-chip broker tells all

Monday, October 3, 2016 1:01
% of readers think this story is Fact. Add your two cents.

(Before It's News)

UBS likes the cut of mining giant BHP Billiton plc’s (LON:BLT) jib, repeating its ‘buy’ advice ahead of a meeting with the management of the company’s oil operation on Wednesday.

It has been almost three years since the firm last updated on its conventional and onshore assets – and a lot has changed in that time. The business is the second-largest contributor to profits.

Onshore BHP has curtailed “activity significantly” to “preserve value”, UBS said. It added the business has potential in the medium-term, presumably when the oil price rises well above US$50 a barrel.

Its offshore oil fields, meanwhile, are a “cash-flow generator”; exploration success is likely to be the “key catalyst”, UBS said.

The Swiss bank expects investment to be US$800mln in 2017 with reserves depleting.

Repeating its ‘buy’, UBS said it likes the company’s free cash-flow yield and the balance of risk and reward. It gets the nod over Rio Tinto PLC (LON:RIO) on that basis.

However its £12 a share target price doesn’t leave much room for growth. BHP opened £11.60.

 

Story by ProactiveInvestors

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.