The Guardian | BP has halted share buy-backs after reporting weaker annual profits as it prepares to continue a plan to resuscitate its fortunes under a new chief executive.
[…]Its incoming chief executive, Meg O’Neill – the former head of the Australian oil company Woodside Energy – will take up the role in April as BP’s third boss in as many years and is expected to enforce “rigour” to BP’s turnaround plan. Meanwhile, activist shareholders are continuing to push the company to prepare for a long-term decline in fossil fuel demand.
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BP will also face pressure from investor groups, which have criticised the decision to turn away from green investments in favour of fossil fuel projects.
“BP is in dire straits because the company has drifted without a consistent strategic direction,” said Mark van Baal, the founder of the shareholder activist group Follow This.
The group has filed a resolution before BP’s annual investor meeting in April calling for the company to disclose its strategy for creating shareholder value under scenarios of declining demand for fossil fuels.
“After a half-hearted energy transition, the company is now doubling down on fossil fuels in a market that will soon start to shrink,” he added. “If BP cannot grow profits and restore its dividend in a growing market, how will the company create shareholder value in a declining one?”
BP commissioned seven new oil and gas projects last year as part its plan to return its focus to fossil fuels after trying to move into big renewable energy investments. Five of the seven projects were delivered ahead of schedule.
