BHP President Tim Cutt spoke about the South32 demerger today at a conference in Melbourne today.
Mr Cutt kicked off his speech, Balancing growth and productivity: The challenge of oil and gas development in a changing marketplace, at the APPEA Conference by acknowledging the South32 demerger.
“I would be remiss if I did not highlight that today marks the commencement of trading for South32, the entity to be demerged from BHP Billiton,” he said.
“We believe the demerger will create two great companies in BHP Billiton and South32.
“South32 will be a substantial independent company with a diversified portfolio of high quality assets and a strong balance sheet.
“As for BHP Billiton, we remain one of the largest diversified global resources companies and our strategic priorities will not change.”
Mr Cutt said the demerger of South32 “simplifies BHP Billiton and enables us to further focus on generating value from our core portfolio of assets”.
The mining-giant president went on to speak about the company’s diversified portfolio and the future of BHP.
“We are excited about our future in Petroleum and we remain committed to our business in Australia. The resources sector is critically important to the world,” Mr Cutt said.
“We have an obligation as an industry and a company to operate safely and sustainably. We must also be prepared to contend with commodity prices that can fluctuate dramatically from day-to-day.”