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The company is refocusing on oil and gas operations, moving away from renewable energy projects. Meg O’Neill, former head of Woodside Energy, will become the first woman to lead a major global oil firm in April. She is expected to continue this strategy.
Carol Howle, BP’s interim CEO, said O’Neill’s leadership will help make BP simpler, stronger, and more valuable.
Ramped-Up Cost-Cutting
BP now aims to save $5.5 billion–$6.5 billion by the end of 2027, up from the previous target of $5 billion. The company also sold a 65% stake in its Castrol business. Analysts praised BP’s decisive steps, including halting the buyback, selling non-core assets, and increasing structural cost savings.
BP currently carries $22 billion in debt. Its fourth-quarter profits fell 30% to $1.54 billion, as Brent crude fell below $60 per barrel for the first time in over four years.
Shareholders Question Strategy
BP’s profits have now declined three years in a row, after peaking at $27.7 billion in 2022. Rival Shell also reported a 22% drop in annual earnings.
Some shareholders are questioning BP’s renewed focus on oil and gas. Pension funds filed a resolution for the April AGM, asking whether upstream investments—exploration and extraction—will deliver the best returns. Critics note that upstream operations caused 75% of disposal losses and impairments since 2020.
Leadership Challenges
Previous CEO Murray Auchincloss stepped down after less than two years, replacing Bernard Looney, who was dismissed in 2023 over undisclosed workplace relationships.
Cornelia Meyer, former BP executive, praised O’Neill’s record. “She’s an oil woman, not a renewables woman,” Meyer said. “If anyone can revive BP’s fortunes, she probably can.”
