BP Faces New Strategy Announcement Amid Activist Pressure
London, UK - February 24, 2023 - BP's CEO, Murray Auchincloss, is set to unveil a revised company strategy on February 26th. The move comes amidst ongoing scrutiny from activist investor Elliott Management and lagging performance compared to US rivals.
Elliott, known for its aggressive approach to strategic change, has acquired a stake in BP. The oil giant has faced questions about its net-zero ambitions and has recently pivoted back to fossil fuels, abandoning plans to cut oil output.
BP's shares have declined 9.3% over the past year, while Shell, its rival, has seen a 6.2% gain. Frustrated investors have cited BP's underwhelming performance and lack of clear direction.
Despite maintaining its net-zero target, BP has cut back on green investments and pledged a $2 billion cost-reduction initiative by 2026. The company has also announced plans to sell a refining site in Germany and reduce its global workforce by over 5%.
While BP struggles, US oil companies anticipate a boom under President Trump's policies, which prioritize domestic oil production. In contrast, the UK government has moved to accelerate the transition away from oil and gas.
Analysts predict disappointing earnings when BP reports its financial results on Tuesday, with an estimated $1.2 billion in underlying profits for the fourth quarter of 2024.
Elliott has declined to comment, while BP has been contacted for a response.