Hunter Hillcoat's questions to BHP Group (BHP) leadership • H1 2017
Question
Hunter Hillcoat asked for the company's long-term target for its gearing ratio, now that it is in the mid-20% range, to help in forecasting future shareholder returns.
Answer
CFO Peter Beaven stated that BHP does not have a specific gearing target, preferring to use a range of metrics, primarily net debt-to-cash flow, and stress-testing the balance sheet. He emphasized that despite higher commodity prices, the company's view on potential downside risk has not changed, leading to a continued conservative bias towards further debt reduction in the near term.