Cape appoints new leader as woes increase
CAPE yesterday named a new chief executive, filling a post that has been vacant since March, in a move that comes less than a week after a shock profit warning from the resources industry services provider.
The company said Joe Oatley, former chief executive of British engineering company Hamworthy, will take over as chief executive at the end of June, replacing Martin May, who stepped down unexpectedly earlier this year after six years at the helm.
Oatley joined Hamworthy — another provider of equipment and services to the marine, oil and gas, and industrial sectors — as chief executive in 2007.
He led the company through the financial crisis until it was eventually bought by Finnish ship and power plant engine maker Wartsila. The stock had shed about 29 per cent of its value since Cape issued the profit warning last week.
Investec analyst Keith Morris said of Oatley: “I think he’s the right guy, so I think it’s a very good catch for Cape to get somebody of Joe’s capability.”
The appointment comes two months after the company stunned investors and analysts by announcing May’s departure soon after Cape said the timing of the work releases on a key project had been slower than anticipated.
Last week the company said it would take a charge for losses on that project in Algeria — one of its two largest contracts — that will hit profit for the year. “It’s not the easiest time to come into the company,” Northland Capital Partners analyst Andy Hanson said.