BP is set to “fundamentally reset” its strategy as part of a new direction aimed at improving its performance, according to CEO Murray Auchincloss. The company’s latest shift comes amid growing concerns from shareholders over its increasing push into renewables, which have been perceived as offering lower returns compared to its traditional oil and gas operations.
“We aim to drive further improvements in performance, all in the service of growing cash flow and returns,” Auchincloss said during the release of BP’s fourth-quarter 2024 results. He added that BP looks forward to outlining the specifics of this new approach during its Capital Markets Update on February 26.
BP has faced increasing pressure as its share price has lagged behind its competitors over the past year. Reports indicate that activist investor Elliott Management has built a stake in the company, potentially signaling dissatisfaction with BP’s current strategic direction.
In 2024, BP took steps to refocus its portfolio, including a partnership with JERA Nex to transfer its offshore wind assets into a new unit. The company described this move as part of its strategy to “divest non-core assets.”
For the fourth quarter of 2024, BP reported underlying profits of $1.17 billion, a sharp decline compared to the $2.99 billion it earned during the same period in 2023.
