As part of the transformation strategy revealed in 2020, BP committed to reducing oil and gas output by 40% by 2030. Nonetheless, the oil and gas output goal was lowered to 25% in 2023 due to instability in energy markets stemming from the Ukraine conflict. As reported by two FT sources, BP CEO Murray Auchincloss will lower the figure again on February 26, completely discarding the target.
As highlighted by the FT, Auchincloss guaranteed a “fundamental reset” to enhance efficiency following the disclosure that US hedge fund Elliott had purchased almost a 5% share in the firm. As reported by the newspaper, a meeting with investors set for February 26 was planned prior to BP learning of the news, yet the news intensified pressure on Auchincloss to adopt significant transformation.
The FT notes that when BP backed out of its pledge to reduce oil and gas output in 2023, its stock surged by over 10% within the following 48 hours. The newspaper points out that some investors expect the formal denial of any production cuts to produce a comparable impact this week.
source: ft.com
As highlighted by the FT, Auchincloss guaranteed a “fundamental reset” to enhance efficiency following the disclosure that US hedge fund Elliott had purchased almost a 5% share in the firm. As reported by the newspaper, a meeting with investors set for February 26 was planned prior to BP learning of the news, yet the news intensified pressure on Auchincloss to adopt significant transformation.
The FT notes that when BP backed out of its pledge to reduce oil and gas output in 2023, its stock surged by over 10% within the following 48 hours. The newspaper points out that some investors expect the formal denial of any production cuts to produce a comparable impact this week.
source: ft.com
