Is BHP Billiton Ltd still a buy?

BHP Details 
Strong half yearly performance: BHP Billiton Ltd (ASX: BHP)reported underlying profit of $3.2 billion for the first half of 2017 as compared to a loss of $5.7 billion in the year ago period. The company's underlying EBITDA surged 65% to $9.9 billion for the same period. BHP recorded productivity gains of US$1.2 billion for the first half thereby leading to an estimated US$1.8 billion of gains for the 2017 financial year, excluding any impact of industrial action at Escondida.
 

Disciplined Capital Allocation (Source: Company Reports)
 
The Board has determined to pay an interim dividend of 40 US cents per share which is covered by free cash flow of US$ 5.8 billion. This comprises the minimum pay-out of 30 US cents per share and an additional amount of 10 US cents per share.
 
Any and All Offer: On February 28, 2017, BHP announced the final results of the Any and All Offer as part of its US$2.5 billion bond repurchase plan. The group will spend US$1,086,081,286.68 repurchasing debt under the Any and All Offer, and will spend up to US$863,918,713.32 repurchasing debt in the Maximum Tender Offers. Further, BHP will also redeem US$500,000,000 2.050% senior notes due 2018 as part of the bond repurchase plan. The group has clarified that no prospectus or other disclosure document in relation to the Tender Offers has been or will be lodged with the Australian Securities and Investments Commission (ASIC) or any other regulatory authority in Australia. 

Leading Margins against Peer group (Source: Company Reports)
 
Stock Performance: BHP stock has risen 25.4% in last six months as at March 01, 2017 and is expected to have more momentum given the commodity price rebound and group’s ongoing efforts and prospects. In terms of the growth portfolio, BHP’s opportunities have been indicated to include Mad Dog 2 approval, Spence Growth Option to Board in CY17, Olympic Dam BFX advancement, successful Trion bid, positive Olympic Dam 450 leach trials, Jansen in feasibility, and Scarborough momentum with new JV. The group has made progress at Samarco with regards to the social and environmental remediation programs and has entered into a Preliminary Agreement with the Federal Prosecutors’ Office. The group has received ‘A’ credit rating with S&P while the outlook has been raised to stable. Net operating cash flow of US$7.7 billion has also indicated for a strong conversion of higher commodity prices into cash. With a net debt of US$ 20.1 billion and gearing of 24.3%, a stable cash flow and rising profit levels, we recommended a “BUY” at the current stock price of - $ 25.70

 
BHP Daily Chart (Source: Thomson Reuters)

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