BHP Names Mike Henry as Next CEO -- Update
13 Noviembre 2019 - 04:19PM
Noticias Dow Jones
By Robb M. Stewart
MELBOURNE, Australia--BHP Group Ltd. (BHP.AU) named Mike Henry
as its new chief executive, opting for his experience running the
most profitable operation of the global miner after a tumultuous
period of big swings in commodity prices and exiting legacy
assets.
Andrew Mackenzie, who has led the company for more than six
years, will retire at the end of the year and his successor will
take on the role of CEO from Jan. 1, the world's largest-listed
mining company said Thursday.
Mr. Henry, a veteran BHP executive who has run the Australian
minerals division for more than three years, succeeds Mr. Mackenzie
at a time when major resources companies are being pressed by
investors to map out a clearer strategy for growth. The Australian
minerals division includes most of BHP's iron-ore operations and
the Olympic Dam uranium-copper mine.
Under Mr. Mackenzie's leadership, BHP sold assets ranging from
U.S. shale gas deposits to South African coal mines and jettisoned
a long-held pledge to increase its annual dividend. The result is a
slimmed-down company, but one more reliant on swings in prices of
just a handful of commodities such as iron ore and crude oil for
profit growth.
Mr. Henry, a Canadian, will face some tricky decisions early in
his tenure. They include the future of BHP's thermal coal assets as
climate-change concerns shape decisions by many institutional
investors. BHP's oil business also is facing competition from the
rising popularity of electric vehicles, while the company aims to
decide by February 2021 whether to push ahead with a big potash
mine in Canada, which would add a new commodity leveraged to demand
for fertilizer.
Then there is the Samarco operation in Brazil that it owns with
Vale SA (VALE), and which has been offline since a tailings dam
burst fatally in 2015.
"Mike Henry's deep operational and commercial experience,
developed in a global career spanning the Americas, Europe, Asia
and Australia, is the perfect mix for our next CEO," said Chairman
Ken MacKenzie, who has led the board for just over two years.
Mr. Henry's career at BHP includes running the company's
commodity marketing business, and he has experience of supply
negotiations with China, the world's top buyer of iron ore and
metallurgical coal. He also was an advocate for better use of
technology at mines as a way to improve profits through greater
efficiency. Mr. MacKenzie said he was confident in Mr. Henry's
discipline and focus to deliver higher performance and returns for
the company.
The range of experience had led many investors to speculate that
Mr. Henry was a front-runner to be the next chief executive. Mr.
Henry was also one of the few executives to keep a senior role when
Mr. Mackenzie took the helm in May 2013 and overhauled the
management team.
Mr. Henry will take over BHP at a time when its financial
performance is healthier than for some time. BHP reported a net
profit of US$8.31 billion for the 12 months through June-the best
result in five years--on the back of strong iron-ore prices. It
also declared a record dividend payout to shareholders.
BHP's recovery partly reflects the steps taken by Mr. Mackenzie,
which included delays to some major projects and a tight focus on
cutting costs. Big deals mostly weren't considered, while BHP
carved out several mining operations that it no longer wanted into
a new company, known as South32 Ltd., that was then listed in
Australia, South Africa and London.
Mr. Mackenzie, a Scottish-born geologist, also led the company
through the sale of onshore U.S. shale gas assets that were
purchased by his predecessor for roughly US$20 billion. They were
sold for US$10.8 billion in a deal agreed to last year.
The outgoing CEO said the company was in a good position, with a
simple portfolio, strong balance sheet and options for growth. He
added choosing the right time for retirement wasn't an easy
decision.
"Fresh leadership will deliver an acceleration in the enormous
potential for value and returns that will come from BHP's next wave
of transformation," Mr. Mackenzie said.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
November 13, 2019 17:04 ET (22:04 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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