Beach CEO in sudden exit as Rich Lister Stokes tightens grip
Beach Energy chief executive Morne Engelbrecht has made an immediate exit and will be replaced by senior Santos executive Brett Woods in a move that is being directly linked to the tightening hold of billionaire Kerry Stokes’ Seven Group Holdings on the board of the under-pressure oil and gas producer.
But the abrupt departure of Mr Engelbrecht after less than 15 months in the role has also stoked concerns among investors about the upcoming full-year results and outlook due to be released by the Adelaide-based company on Monday.
Santos’ Brett Woods will leave to take up the CEO role at Beach Energy.
Shares in Beach, which is about 30 per cent owned by Seven, sank as much as 3 per cent in early trading on the news.
“Given the proximity to its FY23 results and more importantly, FY24 guidance, including updated Waitsia capex and first gas date, the perception of risks to consensus will naturally increase,” Canaccord analyst James Bullen said, referring to the problematic Waitsia gas project under construction in Western Australia, which is running late and over budget.
Mr Woods, a well-respected executive at Santos who some saw as a potential successor to chief executive Kevin Gallagher, will take up the role at Beach on February 21. Non-executive director Bruce Clement will act as interim chief executive, given Mr Engelbrecht ended his tenure immediately.
Energy analyst Saul Kavonic said he expected Mr Woods was Seven Group’s choice as chief executive for Beach, in which it is the largest shareholder. Seven Group CEO Ryan Stokes was appointed a non-executive director of Beach just over two weeks ago.
“I suspect Seven Group and the Beach board have been looking to secure Brett Woods for Beach CEO for some time, after
Read more on afr.com
