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Excellent posts WeirdPal. I guess BP read your posts too....

2 February 2024

Kate Thomson appointed bp chief financial officer and joins board

The board of bp today announced that Kate Thomson has been appointed bp chief financial officer and will join bp's board, both with immediate effect. Kate has been interim chief financial officer since September 2023.

Helge Lund, bp chair commented: "I am delighted to confirm Kate's appointment as CFO and welcome her to the board. She has a detailed understanding of bp and the energy and finance sectors, combined with deep technical expertise. Her record of finance leadership together with her performance as interim CFO have clearly demonstrated her suitability to become bp's permanent CFO. The board looks forward to working with Kate and Murray as we continue with the execution of bp's strategy."

Morning all

Despite having absorbed ~288MM Bbls from the US Strategic Political Reserve (SPR), global oil inventories now sit at their lowest levels since at least 2017.

Missing last words of kart one below...

.. appears to be supported by the facts. End of part one

Enjoy.

The unceremonious departure of Bernard Looney as boss of BP was the perfect opportunity for the oil giant to swiftly change course. Looney was the virtue-signalling chief in blue denim with a lively personal life.

He catapulted one of the world’s oldest fossil fuel drillers headlong into a green future of solar farms and wind turbines, embraced he/his pronouns on he/his personal Instagram feed, and was a vocal advocate of transgender awareness, only to be fired for misleading the BP board over a string of romantic affairs he had with colleagues.

The scandal was another blow to the reputation of an organisation where three out of the last four chief executives have had to resign prematurely but it created an opening to mend BP’s toxic culture, as well as rethink its pursuit of net zero nirvana in the face of growing scepticism from the stock market.

The appointment of finance chief Murray Auchincloss appears to end any such hopes. BP was screaming out for an outsider, yet the Canadian was not only the continuity candidate, it turns out he too is in a relationship with a colleague albeit with the full disclosures made this time, we are assured. He was also quick to pledge his commitment to Looney’s big green ambitions.

“Our strategy – from international oil company to integrated energy company – does not change. I’m convinced about the significant value we can create,” he said upon taking charge earlier this month.

Still, all hope is not lost. The arrival of an activist investor on the scene is unlikely to put a stop to the extra-curricular activities that seem to be rife at BP. Nevertheless, it could test Auchincloss’s resolve when it comes to sticking with a strategy of continuing to drill for oil and gas at the same time as funnelling profits into unproven renewables projects.

Bluebell Capital Partners calls it “irrational” and rightly so. BP is attempting to walk a tightrope, one in which it attempts to retain the faith of investors with the spoils of oil and gas exploration while simultaneously placating the environmental brigade with a reduction in those same drilling activities and the embrace of renewables that typically carry lower returns.

This is where the debate about the energy industry remains focused – can BP, Shell and rivals juggle widely conflicting interests as the world attempts to wean itself off fossil fuels? Increasingly it has the look of a circle that cannot be squared in which one side inevitably must be left feeling shortchanged in order to satisfy the demands of the other.

The result of BP’s desperate efforts to please everyone is that it has ended up stuck in a sort of no-man’s land where its strategy is neither one nor the other – a sort of half-hearted embrace of both approaches that, ironically, has left both both camps increasingly exasperated.

Bluebell’s complaint that the adoption of renewable technology has “depressed BP’s share price” appears to be

Part two....

Total returns have lagged Shell’s and those of foreign rivals including TotalEnergies, ExxonMobil and Chevron over the past four years. This, despite Looney rowing back on his green crusade in the face of mounting pressure. Can an engineer that has spent a lifetime working on a North Sea oil rig easily get a job installing wind turbines? Are there any similarities being building and operating a refinery or a gas pipeline and experimenting with unproven technology like green and blue hydrogen?

Just as important are doubts about whether BP is even set up financially to play a part in the energy transition. Renewable energy projects require high up-front expenditure and funky debt financing to keep things efficient. But BP is yet to spend anything close to the sort of meaningful sums that are needed and is expert only in wielding a balance sheet replete with cash. Instead, the impression is that of sceptical accountants in its treasury department drip-feeding the bare minimum against their will. A break-up is one option to allow better focus. Another rational move would be to run the company down and hand the proceeds back to investors as the world eventually moves on from fossil fuels. Neither is likely but unless Auchincloss can get BP and its cosy culture off the fence, shareholder unrest is likely to intensify and the risk of a hostile takeover will rise.

Beyond the paywall

BP is lost in net zero no-man’s land

The oil giant must get off the fence – or face the growing risk of a hostile takeover.

https://www.telegraph.co.uk/business/2024/01/30/bp-lost-net-zero-no-mans-land/

Hi meoryou

I read the article earlier. Not just because its downbeat but in my honest opinion it's a valueless article of meaningless drivel. I am an ii account holder so not surprised by the 'research'.

I hope you're good.

Based on bp's current forecasts, at around $60 per barrel Brent and subject to the board's discretion each quarter, BP expects to be able to deliver share buybacks of around $4.0 billion per annum, at the lower end of its $14-18 billion capital expenditure range, and have capacity for an annual increase in the dividend ...31 Oct 2023

After much head scratching and concerns for my failing memory I have come to the conclusion that the mods of this forum have carried out a deep detoxification of recent grime on the forum and my innocent posts suffered collateral damage.

Excellent posts today all

Welcome back meoryou

It is a pleasure to be able to read your posts again.

Have a great day

Not BP specific.

Our US peers are also around 52 week lows. The LSE is a small poor relation to the NYSE. They sneeze we catch a cold. On the bright side this has nothing to do with a new CEO or the company specifically. We continue to make billions and parts of the transition are now producing returns. (Electric charging investment is being returned to the balance sheet ) As frustrating and unexpected as the low sp currently is, I have full confidence that the share price will rise from these probable bottoming out levels.

Https://uk.investing.com/news/stock-market-news/bps-new-ceo--who-is-he-and-will-anything-change-3302878

Https://uk.investing.com/news/stock-market-news/natural-gas-data-sparks-optimism-for-chevron-bp-shell-and-natural-gas-etfs-3301781

BP CEO choice 'best possible outcome' for shareholders, RBC analyst says

Jan. 17, 2024 11:42 AM ETBP p.l.c. (BP) StockBy: Carl Surran, SA News Editor

BP's (NYSE:BP) confirmation of Murray Auchincloss as the new CEO is the best possible outcome for shareholders in the short term, as an external candidate would have brought further uncertainty on the direction of the business, RBC Capital's Biraj Borkhataria said Wednesday.

"With one overhang now removed from the investment case, we see room for BP to outperform from here on, given our belief that the current share price undervalues the business," Borkhataria wrote.

The decision sends a message of continuity, and the broader strategic direction should remain relatively unchanged, Jefferies analysts Giacomo Romeo and Kai Ye Loh said.

"As this uncertain period for BP concludes, we believe that it becomes more likely that the update at 4Q results could contain more material changes to BP's capital allocation and distribution policy," the analysts said.

BP (BP) investors should expect some strategic refocus as Auchincloss takes the helm, including a renewed focus on delivery of a near-term earnings growth story of 6%-7% annually in 2024-25, Citi analysts said.

"Given Murray's prior focus on financial roles within BP, we expect an emphasis on ensuring that the transition investment can be delivered with the lowest economic risk to BP shareholders," Citi said

Cricket

"This is now going sub £4". I take it you are going to sell any holding in BP ?

BP price target cut, rated 'buy', 'positive catalysts' ahead - UBS

https://www.proactiveinvestors.co.uk/companies/news/1038663/bp-price-target-cut-rated-buy-positive-catalysts-ahead-ubs-1038663.html

BP's board was meeting on Tuesday evening to finalise the appointment of Murray Auchincloss as its next permanent chief executive, Sky News learns.

https://news.sky.com/story/bp-close-to-naming-acting-ceo-auchincloss-as-permanent-chief-13049798

Early Happy New Year to all contributors to the forum.

Wishing you all a very happy, healthy and prosperous 2024.

Mark

Mark

Mark

Afternoon all

We will have to wait and see how this long running saga plays out. Possibly a surprise external candidate but I personally doubt it for a number of reasons including those previously posted by WeirdPal. The backing of large institutional investors will have major influence in the decision process along with the board. I doubt those investors will be pressuring the board to gamble with an external candidate with all the possible uncertainty of strategy and instability that could bring. Investor's understandable frustration in the underperformance in the last few months, due to mostly external factors - BL farce aside - could be much worse with perceived ceo/ board disunity of direction. Does this mean business as usual? No. To deal with the ever changing energy requirements going forward evolution of strategy not revolution is required.

Mark

It looks like disappointment for those investors hoping for an external appointment and a change of strategy.

Reuters article below

https://www.reuters.com/business/energy/bp-short-lists-three-internal-candidates-ceo-sources-say-2023-12-19/