BP Plc is facing increasing pressure from activist investor Bluebell Capital Partners, urging the energy giant to make a more pronounced return to oil and gas for enhanced returns. Despite indications of a strategic shift in its February 6 earnings presentation, Bluebell contends that BP’s quiet approach is stifling potential share price benefits. Co-founders Giuseppe Bivona and Marco Taricco are calling for bolder actions, including increased investments in oil and gas, a reduction in spending on costly renewable projects, and greater returns to shareholders.
In an interview, Bivona stated, “It looks like BP is already prepared to do, or is planning to do, a lot of the things we’re asking, including increase oil and gas production.” However, the activist investor argues that the company needs to communicate this shift more explicitly to ensure investors benefit from the change.
BP’s CEO Murray Auchincloss, in his first earnings presentation since his permanent appointment, emphasized a “pragmatic” and “flexible” approach to the energy transition. While indicating a potential increase in oil production beyond the targeted 2% to 3% for 2027, Auchincloss reaffirmed BP’s commitment to achieving net zero emissions.
Bivona believes that BP’s reluctance to openly discuss this strategic shift is suppressing the company’s share price. He asserts that the stock won’t see an upward movement “unless BP say clearly to the market what their plans are,” accusing the company of deliberately depressing share prices by not communicating its intentions.
Bluebell, though holding a small stake in BP, claims support from numerous top 40 shareholders who share concerns about the company’s underperformance and endorse the fund’s proposals for a shift in strategy. Despite interactions with BP Chairman Helge Lund and the investor relations department, Bluebell suggests that further engagement seems unlikely, stating that Auchincloss has no plans to personally engage with Bluebell.
As the call for a more decisive pivot back to oil gains momentum, the standoff between BP and activist investors highlights the growing demand for transparency and strategic clarity in the energy sector.
