BHP to Speed Up Payments to Suppliers
BHP Petroleum reported Thursday that it is taking emergency measures to boost cash flow to its suppliers.
The Australian firm, which boasts oil and gas operations in North America and the Caribbean, stated that it will make immediate payments of outstanding invoices and move to seven-day payment terms for the next six months for small and local businesses that support BHP’s Petroleum unit.
“BHP’s first priority is the safety and health of our workforce and communities,” Geraldine Slattery, BHP’s president for Petroleum operations, commented in a written statement. “Communities across the country rely on the critical energy resources we produce and we rely on our suppliers to continue delivering the resource.”
BHP stated the emergency measures reflect a reduction in the current payment terms and cover more than 200 suppliers. The company added the revised payment terms will take effect the week of April 13.
“A cornerstone of the social value of our businesses is the continued health of the companies we count as partners and suppliers, especially during this time of great uncertainty,” Slattery stated.
The firm noted that it spends more than US$150 million annually with its small business supplier base in the United States, Canada, Mexico and Trinidad and Tobago.
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