Outgoing Husky Energy CEO John Lau is moving to his native Hong Kong, where he will head up the company's growing Asian business.Jeff McIntosh
Over the past 18 years, John Lau has built former basket case Husky into a key actor on the Canadian energy scene. On Tuesday, he left the CEO's job, preparing to take a key building role in Husky's Asia operations for his boss, Hong Kong billionaire financier Li Ka-shing. On Wednesday, the 67-year-old paid tribute to the role of the East Coast in Husky's turnaround, speaking at a Calgary fundraising dinner for Newfoundland's Memorial University with Premier Danny Williams on hand. Some of his comments:
Measuring success
"The company was losing $1-million a day in 1992. Today, we're happy to say we are making over $7-million to $10-million a day. Today, even with the market meltdown, Husky is worth $22-billion. And the total dividend to shareholders has been over $6-billion. [Mr. Li]is very happy.
In addition to all the money, by the 2000 reverse takeover of Renaissance, [Mr. Li]got a Western Canadian presence free of charge.'
Where credit is due
"All this was not done by me alone, because the Husky team has been working very hard - in the relationship with the government and in the understanding of human behaviour.
I've been called an 'asshole' many times, because every time we do a deal, Husky gets named for the best deal of the year by the oil and gas industry. For every one winner, there must be a loser. Whether you call it good or bad, it is a progressive development for Husky's history."
The job that never ends
"I originally came here for three years, and then three years, and then three years and then three years. Today I've been here for 18 years. The company grew from that initial investment, so that today, the [major]shareholder has received a return of more than 1,000 per cent. That is a big amount.
"Then [Mr. Li]decided to look at Husky's future and how we are going to spin off to maximize value for all shareholders. He is giving me $1 to try to do the same thing again - [to see]whether I can bring Husky Energy more than $10-billion [in value.]That is my future job. It reflects the carrot-and-stick approach by our group.
Finding a successor
"As I step down, I introduce you to my successor, Asim Ghosh. Our core company selects the best and nothing but the best. We had a challenge looking internally and externally and even used a headhunter to find the best person to replace me. The group has been trying to do that for the past 10 years, and so we went to Asim Ghosh [from the cellphone industry] Even though he is a stranger to oil and gas, with his business acumen and the way he does business, I feel the board has selected the right person."
From West to East
"Newfoundland and Labrador is one of the areas where I made my first decisions - to put Husky into offshore development and to choose the East Coast's Jeanne d'Arc Basin as our home.
If you look at deep water, at that time it was not famous. No one dared to touch it, but I looked at it another way. One-fifth of the world is land and it has been worked and explored like cheesecake. The other four-fifths had not been really touched. It is the deep-water, offshore part. With government conditions, and help and support, we branched into Jeanne d'Arc Basin. No one wanted it. We picked it up really cheap.
It reflects a vision, determination, commitment, tougher execution and a foresight about what is the value creation. I am proud to say the East Coast will continue to be in Husky's core business."
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