Global mining giant BHP Billiton Ltd
(ASX:BHP) CEO Marius Kloppers received a 51 per cent increase in his remuneration package to US$10.39 million for the year to June.
This is despite calls for tougher regulation of executive pay packets in the wake of the global financial crisis.
However in the U.S. release of its annual report BHP defended the increase highlighting that over the five year performance period the company’s total shareholder return was 220 per cent.
The company says in contrast the average total shareholder return for an index of peer companies was 71.8 per cent.
BHP says that a big part of the pay rise was due to the long term incentive plan which came into affect this year.
Chairman John Buchanan says he is satisfied the remuneration package is sound.
BHP recently reported a fall in full year profit with Mr Kloppers saying the company does not expect a return to the same buoyant conditions that prevailed before the global financial crisis, or a return to record global growth rates within its forecasting horizon. BHP’s 2009 net profit took a massive tumble from its high in 2008 of US$15.4 billion.
Engineering and construction Company Clough Ltd (ASX:CLO) has announced that Kellogg Joint Venture Group, of which it is a part of, has been awarded a $2.7 billion contract by Chevron Australia.
The Kellogg Joint Venture is a partnership between Clough Projects Australia, KBR E&C Australia, JGC Corporation and Hatch Associates.
The company is to engineer, procure and construction manage the liquefied natural gas downstream and logistics portion of the multi-billion dollar Chevron operated Gorgan LNG Project.
The Australian Financial Review says Clough, who is a 20 per cent partner in the Kellogg Joint Venture, is expected to receive around $540 million from its share in the revenue generated by the contract.
CEO John Smith says the company is delighted to be playing a major role, both as partner in the Kellogg Joint Venture Group and in delivering the Gorgan LNG facilities.
The Gorgan Project plans to develop the Greater Gorgan gas fields, located between 130 kilometres and 200 kilometres off the north-west coast of Western Australia. Clough pulled itself out of the red in 2008 to post a profit of $66.6 million.
Airport owner Macquarie Airports (ASX:MAP) says it has agreed to sell its 35.5 per cent stake in Bristol Airport to Ontario Teachers Pension Plan for $244.3 million.
The sale represents a 12.7 per cent discount to Macquarie’s June 30 valuation of Bristol Airport.
The company says it will also acquire a further 3.9 per cent stake in Copenhagen Airports from Ontario Teachers Pension Plan for $340 million, taking its interest in Copenhagen to 30.8 per cent.
Macquarie says the two transactions will lift the company’s net cash reserves by around $120 million to approximately $900 million.
CEO Kerrie Mather says with the company’s portfolio having grown significantly over the last five years, Bristol now represents just four per cent of its portfolio by value, and the company feels that its investors are better served deploying Macquarie’s resources elsewhere. Macquarie Airports 2008 net profit was $2 billion.
Manufacturer and distributor of mining and chemical products and services Orica Ltd (ASX:ORI) has written down the value of its Botany groundwater treatment plant assets in NSW to nil.
The assets previously had a book value of $61.1 million before the write down.
The company says the write down will not effect the company’s commitment to the continued operation of the plant.
Orica says this non cash write down will be recognised as an individually material item in the financial statements for the year to September 30 2009.
In May this year the company reported a 2 per cent decline in net profit for the half year and said it expects net profit after tax in 2009 to be higher than in 2008. Orica reported net profit of $539.6 million in 2008.
