There was media speculation last week out of Europe that BHP is exploring potential to divest its petroleum business. CEO Mike Henry has previously maintained that BHP would look to divest its oil and gas business at an appropriate time, highlighting previously that BHP still saw attractive returns on offer in the segment.
“There has been the global surge in environment, social and governance (ESG) concerns from investors, which has seen increasing pressure on resource companies to cut their fossil fuel exposures,” Raymond said.
“Recovered oil and gas prices would suggest a better opportunity to achieve a decent valuation for BHP’s petroleum business, which we value at US$14.5 billion.
“We would see an exit from petroleum as weakening BHP’s earnings profile and reduce its diversification. “But we equally recognise the ESG push from investors, which a petroleum exit would help. “Morgans has BHP as a hold and says that it remains attractive for investors who seek income.
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Source: Google
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