Shareholders are owed a plan, not just a profit figure
PRESS RELEASE
BP today reported a rise in first-quarter profits to $3.2 billion (compared to $1.5 bn. in Q4), due to elevated oil prices driven by the war in Iran. The quarterly dividend of $0.0832 remains well below its pre-Covid level of $0.105 per share. BP has no plans for a declining market.
“Bragging about a windfall profit is not a strategy. It is a delay, not a direction,” says Mark van Baal, CEO of Follow This.
Five days ago, majorities of shareholders voted against two board resolutions at BP’s AGM, after BP blocked a shareholder resolution on oil demand risks.
“Last week, shareholders delivered a clear verdict on BP’s governance and strategy – and today, BP’s silence on that embarrassment speaks volumes. The board must act,” says Van Baal.
The Follow This resolution calls on BP to publish how it plans to create shareholder value under declining demand scenarios. It is basic disclosure – the kind that shareholders of any company facing a structural market shift have the right to require.
“If BP cannot restore its dividend in a growing market, how will the company create shareholder value in a declining one?” asks Van Baal.
“BP is in denial. The board has no plan to diversify beyond petroleum. As oil demand declines, a company that fails to diversify faces managed decline. If you are in a hole, stop digging,” Van Baal adds.
“When a board says it does what shareholders want, then receives majority votes against its own resolutions, one of two things is true: either they do not listen, or they do not tell the truth. We do not know which is more frightening for shareholder value,” Van Baal concludes.
Shell, facing the same resolution, complied with its legal obligation and put it to a shareholder vote. BP refused.
Follow This calls on institutional investors to maintain pressure on BP’s board until it provides the reporting commitments shareholders have required.
