BHP delivered a strong set of results for the 2021 financial year, with a safe and reliable operational performance and strong financial returns. On the back of these results, the Board has announced a record final dividend of US$2.00 per share, bringing BHP's returns to shareholder to more than US$15 billion for the full year.
Our strategy is to deliver long-term value and returns through the cycle. We aim to do this through owning a portfolio of world class assets with exposure to highly attractive commodities which benefit from the mega-trends playing out in the world around us, by operating them exceptionally well, by maintaining a disciplined approach to capital allocation and through being industry leaders in sustainability and the creation of social value.
As the world continues to evolve, BHP is positioning itself to benefit from the mega-trends and through sustainability leadership.
To this end, today we have announced:
· Investment in the Jansen Stage 1 potash project which is aligned with our strategy of growing our exposure to future facing commodities in world class assets;
· Agreement to pursue a merger of our Petroleum business with Woodside to create a global top 10 independent energy company with a large-scale portfolio of producing, development and exploration assets; and
· Intention to unify our corporate structure under BHP's existing Australian parent company to realise simplification and enhanced strategic flexibility benefits.
BHP Chair, Ken MacKenzie:
"BHP's performance over the past year illustrates the strength of our portfolio, balance sheet, people and performance culture . Including the record dividend announced today of US$2.00 per share, we have returned over US$15 billion to shareholders over the past year.
BHP is in a strong position to manage its future in a time of rapid change. We have a clear strategy and are executing against it. Jansen Stage 1 will give BHP exposure to a commodity with a strong demand outlook and decades of potential growth. The agreement to pursue a merger of BHP's Petroleum business with Woodside will maximise the value of our oil and gas assets through increased operating scale and synergies, with a more diversified product portfolio to support the energy transition. Now is the right time to unify BHP's corporate structure. BHP will be simpler and more efficient, with greater flexibility to shape our portfolio for the future. Our plans announced today will better enable BHP to pursue opportunities in new and existing markets and create value and returns over generations."
BHP Chief Executive Officer, Mike Henry:
"The BHP team has achieved a great set of operational and financial results in the year past. This is thanks to both the outstanding effort of 80,000 people across the company, as well as to the support of BHP's thousands of suppliers and customers, and our host communities and governments. Most importantly, our improved results were achieved safely, with 2021 being our second consecutive full financial year with zero fatalities in BHP operations. We achieved several production records and our four major capital projects were executed on time and on budget. We continue to invest in people and technology, setting BHP up for ongoing improvement in performance.
We continue to actively position our portfolio as well for future returns and growth. We have progressed exploration and development in copper and nickel, commodities which are favourably leveraged to the mega-trends of electrification and decarbonisation. In sanctioning the Jansen Stage 1 project in Canada, we gain access not only to the healthy returns of this project on a stand-alone basis, but to a new front for growth in a future facing commodity in the world's best potash basin and an attractive investment jurisdiction. The merger of our petroleum business with Woodside will create a top 10 global independent energy company, unlocking value for BHP shareholders, including through synergies, and a stronger, more resilient combined business that will be better positioned to continue to grow value as it navigates the energy transition."
And later;
The Board has determined to pay a final dividend of US$2.00 per share or US$10.1 billion, which includes an additional amount of US$0.91 per share (equivalent to US$4.6 billion) above the 50% minimum payout policy. Total dividends announced of US$3.01 per share, equivalent to an 89% payout ratio.
Dividends paid during the period differs from the amount of dividends paid in the Consolidated Cash Flow Statement as a result of foreign exchange gains and losses relating to the timing of equity distributions between the record date and the payment date. Additional derivative proceeds of US$8 million was received as part of the funding of the interim dividend and is disclosed in (Settlements)/proceeds of cash management related instruments in the Consolidated Cash Flow Statement.
The Dual Listed Company merger terms require that ordinary shareholders of BHP Group Limited and BHP Group Plc are paid equal cash dividends on a per share basis. Each American Depositary Share (ADS) represents two ordinary shares of BHP Group Limited or BHP Group Plc. Dividends determined on each ADS represent twice the dividend determined on BHP ordinary shares.
Dividends are determined after period-end and contained within the announcement of the results for the period. Interim dividends are determined in February and paid in March. Final dividends are determined in August and paid in September. Dividends determined are not recorded as a liability at the end of the period to which they relate. Subsequent to the year end, on 17 August 2021, BHP Group Limited and BHP Group Plc determined a final dividend of 200 US cents per share (US$ 10,114 million), which will be paid on 21 September 2021 (2020: final dividend of 55 US cents per share - US$2,782 million; 2019: final dividend of 78 US cents per share - US$3,944 million).
At 30 June 2021, BHP Group Limited had 2,945 million ordinary shares on issue and held by the public and BHP Group Plc had 2,112 million ordinary shares on issue and held by the public. No shares in BHP Group Limited were held by BHP Group Plc at 30 June 2021 (2020: nil; 2019: nil).
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