BHP Billiton: Capex to fall to $14bn after demerger

BHP BILLITON said yesterday that it expected to limit annual capital expenditure (capex) to $14 billion (R153bn) after a planned demerger next year. The company’s capital and exploration expenditure declined by 32 percent in 2014 to $15.2bn, chief executive Andrew Mackenzie said. “Our level of investment is expected to decline again in 2015 to $14.8bn and be no more than $14bn beyond the demerger.” Previously, BHP had said it was targeting annual capital expenditure to below $15bn. BHP, the world’s biggest mining company, in August announced plans to spin off operations worth roughly $16bn to focus on its most profitable activities. BHP Billiton’s shares lost 0.76 percent to close at R285.36 on the JSE yesterday. – Reuters