POTASHCORP
The new CEO promises he ‘won’t let you down’
Almost 25 years ago Potash Corporation of Saskatchewan had its initial public offering, a week before the Berlin Wall fell and at a time when Bill Doyle sported a solid moustache.
In that time frame the company’s shares are worth about 44 times that initial value and its net profit from $89 million in 1989 to $1.8 billion last year.
“I still own my original 50 shares,” said Doyle, PotashCorp’s president and CEO who will step down from that position in July.
Doyle spoke at his last annual general meeting as CEO and said the company is in great shape moving forward.
“Our balance sheet is super strong, our capital expenditures program is coming to an end, we have the best platform for growth in the industry ... markets are turning. We are seeing real good prospects for growth and that’s exciting.”
Doyle introduced the incoming president and CEO, Jochen Tilk, who assumes those positions July 1.
Tilk said he was in the process of moving to Saskatoon and was looking forward to the challenges ahead.
“You have my commitment that I will do everything I can ... I will not let you down,” said Tilk, the former CEO of Inmet Mining Corp.
The potash industry went through plenty of turmoil in 2013 after OAO Uralkali, the world’s largest potash producer, withdrew from a sales accord with its Belarusian competitor and announced plans to boost output. The rift saw potash prices fall by 25 per cent.
Doyle said the potash industry has gone through many upheavals during his time, including the collapse of Soviet Union that saw potash flood the market, $2 corn prices in the 1990s and the 2008 great recession.
“Through these ups and downs we’ve always addressed our problems head on.”
Last year, as prices and demand fell, Potash Corp cut more than 1,000 jobs, or 18 per cent of its workforce.
“It was the toughest decision that we’ve ever had to make.”
But Doyle said it is important for the company to maintain a long-term perspective.
“You have to stick to the long- term strategy of the company. You don’t pay attention to the shortterm pressures that you get in today’s marketplace.”
Instead of looking at the next three or six months, they are planning out decades into the future.
“Over the last 25 years we have gone from a local provincial potash company to the world’s largest fertilizer company,” said Doyle, adding in 1989 the company’s market capitalization was $289 million, today it is $31 billion.
“That is a considerable amount of growth.”
He said his job, and that of the management team has been to be good stewards of the company.
“To make sure we take the company we were handed 15 years ago and we hand it off to the next generation of management in better shape than when we got it. And I think we can say that.”
And there is much more room to grow in the future, he said.
Potash Corp also announced a quarterly dividend of US$0.35 per share payable Aug. 1, 2014 to shareholders of record July 11, 2014.