Latest news with #KenMacKenzie
Reuters
22-05-2025
- Business
- Reuters
How BP top brass can get an Elliott-backed revamp
LONDON, May 19 (Reuters Breakingviews) - Elliott Investment Management's next big move at BP (BP.L), opens new tab is installing board leadership it likes. The U.S. activist, which now holds 5% of the struggling $78 billion oil major, understandably wants a swift replacement for departing Chair Helge Lund. While suitable candidates aren't exactly abundant, some exist. The sooner a new chair is in place, the sooner BP can push for more drastic changes – including identifying a new chief executive. Lund and incumbent CEO Murray Auchincloss were key figures in a five-year diversion into low-carbon energy, now comprehensively ditched. Rightly or wrongly, the group now wants to be fossil fuel-focused again. Regaining credibility with investors means appointing leaders with experience in the extractive industries – fossil fuels or mining. The ideal new chair would be available right now, apply themselves to BP solely – unlike Lund, who also chairs pharma giant Novo Nordisk ( opens new tab – and be someone Elliott can work with. That person could be John Manzoni, who used to run BP's refining operations and now chairs the board at Johnnie Walker maker Diageo (DGE.L), opens new tab. It could also be former Anglo American (AAL.L), opens new tab CEO Mark Cutifani, now chair at Vale's base metals unit. Given BP's strategic troubles, Cutifani would bring a valuable outsider's perspective. Yet Ken MacKenzie would offer that too, and more. The 61-year-old, who retired as BHP's ( opens new tab chair in March, had Elliott's blessing, opens new tab on taking up his position at the $123 billion mining giant in 2017 after a decent record as CEO at packaging firm Amcor. During his tenure BHP's returns bested rival Rio Tinto ( opens new tab and the group largely followed through on the activist's main demands, including selling its U.S. shale assets – coincidentally, to BP – and dissolving a dual listing structure. The Canadian-Australian would have to be tempted to relocate to London from Melbourne. Yet his near-namesake Andrew Mackenzie, who served as BHP CEO during his tenure, has repositioned BP's crosstown rival Shell (SHEL.L), opens new tab with some success. Investors would likely greet a Ken MacKenzie-chaired BP positively, giving confidence that it could complete Elliott's requirements for disposals of non-core assets and more aggressive cost cuts. A new chair is only half the revamp challenge, though. BP may also need a CEO who knows the company but isn't implicated in its recent missteps. One appealing candidate is Rolls-Royce (RR.L), opens new tab Chief Executive Tufan Erginbilgic, a two-decade veteran in the fuels, lubricants and petrochemicals segment of BP before his exit in 2020. Since announcing his appointment in July 2022, $91 billion Rolls' shares have risen tenfold. Erginbilgic is already 65, and may not want to check out of a winning situation. But BP is a similar turnaround challenge to Rolls. A company run by Erginbilgic, and overseen by MacKenzie, would at least give investors greater confidence a revamp is possible. Follow @ywchen1, opens new tab on X CONTEXT NEWS Ken MacKenzie retired on March 31 after eight years as BHP chair. According to the UK Corporate Governance Code, the recommended tenure limit for a chair is nine years. During MacKenzie's time as chair, BHP's total shareholder returns grew 22% a year on a compounded basis, BHP said. MacKenzie didn't respond to a request from Reuters Breakingviews to comment. BP told Breakingviews the process to name a new chair was moving at pace, led by senior independent director Amanda Blanc. It added the company recognised that it was in everyone's interest that an appointment was made as swiftly as possible, without compromising the rigour of the process.
Yahoo
09-04-2025
- Business
- Yahoo
BHP Group (ASX:BHP) Sees 11% Share Price Decline Over the Past Week
BHP Group experienced a 11% decline in share price over the past week, a movement reflecting broader market volatility rather than isolating company-specific factors. The retirement of Ken MacKenzie as an independent Non-executive Director was a key event, but given the 12% drop in the broader market amid global tariff uncertainties, it's unlikely this board change exerted a significant effect on the company's trajectory. Financial markets, especially industries entwined with global trade, were broadly impacted by fear of an economic slowdown, suggesting BHP's price move was part of a wider market trend. We've spotted 2 possible red flags for BHP Group you should be aware of, and 1 of them can't be ignored. The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. The recent changes at BHP Group, particularly the departure of Ken MacKenzie, seem to reflect broader market volatility rather than being isolated company-specific issues. In the past week, BHP's share price declined by 11%, aligning with a similar drop in the broader market. This correlates with the economic uncertainties and potential slowdowns in global trade impacting the entire sector. Over a longer period, however, BHP's shares have seen a total return of 72.81% over five years, indicating a historically strong performance despite recent fluctuations. Relative to the industry, BHP underperformed in the past year, returning less than the Australian Metals and Mining industry, which saw a 19.8% decline. This context suggests that while BHP's long-term performance is robust, short-term challenges persist. The broader economic conditions remain a pivotal factor affecting revenue and earnings forecasts. Analysts project a revenue decline of 2.5% annually and earnings reduction, potentially reaching $10.7 billion over the next few years. However, the company's strategic expansions into copper and potash markets could balance these forecasts by adding diversity and stability to its revenue streams. The current share price of A$38.32 is notably below the analysts' consensus price target of A$44.33, reflecting a discount to perceived fair value. This gap suggests that analysts believe BHP's long-term potential remains strong despite anticipated short-term earnings and revenue adjustments. As BHP progresses with its diversification efforts and addresses liabilities, such as those from the Samarco dam incident, the market's perception might align more closely with analyst expectations. Click to explore a detailed breakdown of our findings in BHP Group's financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:BHP. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Reuters
02-04-2025
- Business
- Reuters
Exclusive: BHP considered spinning off iron ore, coal divisions
MELBOURNE, April 2 (Reuters) - The world's biggest listed miner BHP Group ( opens new tab considered spinning off its Australian iron ore and coal divisions as part of a medium-term growth strategy, three sources with knowledge of the matter told Reuters. As part of a planned focus on future-facing commodities potash and copper, BHP weighed separating out the divisions, as it did with South32 ( opens new tab in 2015, with an Australian listing most likely, two of the sources said. The consideration was underway as BHP was pushing hard to green its business and preparing its bid for Anglo American (AAL.L), opens new tab in 2023 and 2024, they said, asking to remain anonymous because the issue was sensitive. BHP declined to comment. Such a move would radically reshape BHP, divorcing it from more than half a century of iron ore mining in Australia, where it was incorporated in 1885. Iron ore accounts for approximately 60% of its profits. Unbundling coal with iron ore would also remove the bulk of its carbon exposure. BHP would, however, keep its South Australian copper assets, backing its strategy to be a leading supplier of the metal needed for the energy transition. While BHP opted not to progress with its plans for now, the discussions are an insight into the scale of transformation the miner would consider as it recalibrates its future direction with a change in senior leadership. Former National Australia Bank head Ross McEwan assumed his role as new BHP chair this week, following the departure of Ken MacKenzie, and the contest for a successor to CEO Mike Henry - in his fifth year in the top job - is about to begin. Henry and CFO David Lamont, who stood down from the role in February 2024, discussed with investors the plan to separate BHP's future growth from its declining growth businesses towards the end of the decade. Ultimately they decided it was not the right time because BHP still required the huge amounts of cash generated by the two Australian divisions to fund capital spending at its Escondida copper complex in Chile and its Jansen potash development in Canada. BHP's view was a spin-off of iron ore and coal would generate cash and franking credits that benefit Australian tax-payers, meaning there could be considerable Australian interest in any flotation, one of the people said. In addition, a freed-up copper and potash unit would have more scope to seek out fresh combinations, such as with Teck Resources ( opens new tab, the people said. The plan was complicated by BHP's failure to purchase Anglo, which would have bulked up the copper business and helped with cash flow, while the incentive to green its business has become less strong as many corporations across the world step back from environment goals. That suggests any move down that path may be further off. "The whole strategy is contingent on copper and potash being self-sustaining businesses, both of which have large capital requirements for at least the next five years," another of the people said.
Reuters
12-02-2025
- Business
- Reuters
BHP says McEwan to replace MacKenzie as chair
Feb 12 (Reuters) - Mining group BHP ( opens new tab said on Wednesday that Ross McEwan, a current board director, would be its new chairman after Ken MacKenzie retires on March 31. MacKenzie was with BHP for nine years and has been chair for the last eight. He oversaw BHP's recovery from the Samarco dam disaster, the unification to a single Australian listing, an entry into Canadian potash and a workforce that is approaching gender equity. McEwan has been an independent non-executive director at BHP since April 2024 and was previously CEO of National Australia Bank ( opens new tab and the Royal Bank of Scotland ( He is currently a director at plumbing and bathroom products supplier Reece ( opens new tab and at defence technology company QinetiQ Group (QQ.L), opens new tab.
