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Elliott Management Becomes BP’s Second-Largest Investor, Pressures for Deeper Oil Focus

The activist hedge fund now controls over 5% of BP via financial instruments, urging a sharper pivot from renewables to boost cashflow and shareholder returns.

Overview

  • Elliott Management has surpassed the 5% ownership threshold in BP, making it the company’s second-largest investor after BlackRock.
  • The hedge fund's stake is held through financial instruments rather than direct shares, valued at approximately £2.8 billion.
  • Elliott is pushing BP to accelerate its exit from renewable energy investments and prioritize free cashflow growth, citing concerns about underperformance.
  • BP’s shares have dropped 17.5% since U.S. tariffs were introduced, underperforming rival Shell, which has fallen 12.5%.
  • BP’s recent strategic shift has drawn scrutiny from UK MPs, with parliamentary questioning highlighting tensions over balancing profit goals with climate commitments.