By Barry FitzGerald
Because of the stronger dollar, there is to be an ever-so-slight reduction in BHP Billiton's final dividend payment to its Australian shareholders - even though the dividend payment is up 9.7 per cent in US dollar terms.
BHP today announced that the exchange rate that will apply to this year's final dividend of 45 US cents a share - to be paid on September 30 - is 92.49 US cents, making the payment 48.64 cents a share in the hands of Australian shareholders.
Last year's final dividend was lower at 41 US cents but was paid to local shareholders at a sharply lower exchange rate of 84 US cents - making the payment 48.68 cents a share.
Somewhat ironically, the 10 per cent rise in the dollar during the year reflected the rebound in commodity prices.
That rebound helped BHP post a full-year profit of $US12.46 billion ($14.08 billion), its second highest, as wells as confirm a near-negligible debt position, giving it immense financial firepower to pursue its hostile $US40 billion bid for Canada's Potash Corp.
BHP's profit, announced on August 25, was a 16.3 per cent improvement on $US10.72 billion previously. The result was just shy of market consensus for a $US12.6 billion profit and came ahead of expectations that this year's profit could crack the $US20 billion mark.
bfitzgerald@theage.com.au