BP to Overhaul Strategy Following Profit Decline and Investor Pressure

The oil giant plans a strategic reset, with reduced renewables focus and potential asset sales, as activist investor Elliott Management takes a stake.

BP reported a 36% drop in annual profits for 2024, with fourth-quarter earnings falling 61% year-on-year, attributed to stagnant oil prices and weak refining margins.
CEO Murray Auchincloss announced plans to 'fundamentally reset' BP's strategy, focusing on improving cash flow and performance, with details to be revealed on February 26.
BP's shift includes scaling back renewable energy investments, spinning off its offshore wind business, and potentially abandoning earlier oil production reduction targets for 2030.
Activist investor Elliott Management has acquired an undisclosed stake in BP, raising expectations for strategic changes, including possible asset sales or a board reshuffle.
Analysts warn BP's underperformance compared to rivals and strategic uncertainty could make it vulnerable to a takeover or further investor agitation.