BP plans a sweeping review

CEO: Company 'can and will do better'

- MITCHELL FERMAN

BP Plc will embark on fresh reviews of its portfolio and costs as the oil major works to reverse years of underperformance, with Chief Executive Murray Auchincloss promising that the company "can and will do better.

The UK oil major outlined the plans last Tuesday as it posted earnings that topped estimates on the back of strong trading results and robust cash flow, while net debt decreased. The company has been under growing pressure to deliver on a turnaround plan, including from activist investor Elliott Investment Management, which has called for sweeping changes and deeper cost cuts.

The latest reviews extend a tumultuous period for BP, which was criticised for a lack of direction as its shares tumbled after a failed pivot to renewables, prompting speculation it could become a takeover target. Mr Auchincloss eventually announced a strategy reboot in February to refocus on oil and gas, with targets for cutting costs and spending and $20 billion of asset sales by the end of 2027.

But the plan received a lukewarm response from investors and was criticised by Elliott for not going far enough.

The CEO said he’s spoken with incoming Chairman Albert Manifold and agreed to “a thorough review of our portfolio of businesses to ensure we are maximising shareholder value,” in addition to a further cost review. “BP can and will do better for its investors,” Mr Auchincloss said.