Commodity Prices Seen Boosting BHP

Commodity Prices Seen Boosting BHP

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Business

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BHP Billiton is set to report its largest first-half profit in three years, driven by strong global growth and stable commodity prices, particularly in copper and oil. Investors are keen to see if BHP will return more cash to shareholders, following the example of Rio Tinto. Activist investor Elliott Management is pushing for a company restructuring to unlock $22 billion in value, but BHP has resisted, citing potential costs and shareholder disadvantages. Additionally, BHP is working on divesting its US shale assets, a move aligned with Elliott's broader strategy.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the main factors driving BHP Billiton's expected profit increase?

Decreased production costs

New technological advancements

Strong global growth and commodity prices

Reduction in workforce

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are investors particularly interested in regarding BHP's financial decisions?

Expansion into new markets

Returning cash proceeds to investors

Hiring new executives

Launching new products

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What restructuring proposal has Elliott Management suggested to BHP?

Reducing the workforce

Expanding into renewable energy

Unifying the company structure

Merging with another company

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is BHP's current strategy regarding its US shale assets?

Expanding production

Partnering with local companies

Accelerating exit and divestment

Investing in new technology

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is BHP planning to sell its US shale assets?

By merging with another company

Through a public auction

In different geographic basins

As a single package