Mike Henry and Liz Westcott: Investors cheer new BHP, Woodside leaders, but each plot different futures

BHP’s new chief executive, Brandon Craig, can act as a bridge between its iron ore present and copper future, guiding the the miner’s pivot into future-facing metals at its overseas and South Australian mines.

On Wednesday, BHP announced Mr Craig will succeed chief executive Mike Henry from July 1. On the same day West Australian oil and gas giant Woodside revealed acting CEO Liz Westcott will permanently succeed Meg O’Neill as of today.

“I’ve met Ms Westcott and found her very impressive, so I’m not surprised,” said Peter Gardner, a founder of $24.8 billion equities manager Plato Investments.

Professional investors view both internal appointments as steady hands to deliver continuity, although BHP’s Mr Craig takes control of a company shifting strategy far more than Woodside.

Copper, potash

In 2022, Woodside bought BHP’s oil and gas assets in an $18.5 billion share-based deal that allowed it to effectively double-down on its strategy to back fossil fuels. BHP accelerated a more ambitious transformation away from fossil fuels into potash and copper.

“Mr Craig’s appointment suggests BHP is likely to build on this strategic direction rather than pursue a material shift in portfolio strategy,” said RBC Capital analyst Kaan Peker. “The appointment of an internal candidate with deep operational exposure to iron ore and copper reinforces continuity at a time when it’s entering the execution phase of its copper-led growth strategy.

“As such, we see the leadership transition as unlikely to alter the group’s strategic direction, with the focus shifting toward project execution, capital discipline and portfolio optimisation.”

While Mr Henry planned the pivot, Mr Craig is left to execute. Mr Henry will be a tough act to follow given he delivered total returns to shareholders around 17 per cent per year, including dividends.

Copper shortages

Analysts expect copper to be in a supply shortfall from the late 2020s onwards, as rising demand linked to the clean energy transition and need to electrify transport pushes prices higher.

The ASX-listed giant is the world’s largest copper producer and has room to invest at its existing mines in Chile and South Australia to meet its target to grow production by 40 per cent, or 2.5 million tonnes per annum, by the mid-2030s.

Strong price drove BHP’s operating profit margins for copper to 66 per cent over the six months ended December 31, ahead of the company’s world-leading iron ore operating profit margin of 62 per cent for the same period.

“BHP retains significant optionality within its project portfolio,” said RBC. “Areas where future leadership decisions could shape the company over time include the pace and sequencing of its Vicuña [copper] development in Chile, further portfolio optimisation toward future-facing commodities, and potential M&A should opportunities arise.

“However, given the scale and scope of existing organic growth options and the staged development framework already outlined, we would expect evolution rather than a material strategic reset.”

Mr Craig is regarded as a slight surprise in beating the miner’s current chief financial officer Vandita Pant and President of Australia Geraldine Slattery to the role.

However, Plato’s Mr Gardner said the board’s choice is “well regarded” by powerful institutional investors in the $253 billion mining behemoth.

“We still rate BHP a buy given its growth in copper,” he said. “But of course it’s very dependent on the direction of commodity prices which is uncertain at this stage.”

Woodside unlikely to pivot

Woodside’s decision to appoint a 25-year veteran of the oil and gas industry suggests it has little intention to attempt an expensive pivot into green energy.

It only needs to look at the problems of London Stock Exchange-listed BP as Ms O’Neill’s new employer to see how things can go wrong when fossil fuel specialists attempt to expand into costly green energy.

In 2025, BP’s shareholders forced it to retreat from its costly push into wind and solar that ended with a $US5 billion ($7.5 billion) balance sheet write down.

Now, Ms O’Neill has been hired by the British energy giant to return it to its oil-drilling roots, where she has expertise, and to draw a line under the strategic failure of its “Beyond Petroleum” initiative that invested in renewable energy.

Ms Westcott, unlikely to risk the same strategic mistakes, is seen by analysts as concentrating on controlling costs and improving production.

“My focus as CEO is on sustainable value creation for Woodside shareholders, operational excellence and disciplined execution of our growth projects,” she said on Tuesday.

Woodside’s only real strategic pivot since the pandemic was the $3.7 billion acquisition of the Beaumont low-carbon ammonia project in Louisiana, USA, in 2024.

It was part of the Perth-based company’s “new energy” strategy. The ammonia project has disappointed amid delays to reach expected production and a recent admission from Ms Westcott that customer demand is weaker than expected.

Plato’s Mr Gardner said he rates Ms Westcott highly, but thinks Woodside shares are a ‘hold’ given the short-term direction of oil and gas prices is linked to the chaotic nature of the Middle East war.