BP (LSE:BP.)’s newly appointed chief executive Meg O’Neill told employees on Wednesday that she intends to bring stability to the company while stepping up efforts to improve performance, according to a staff memo reviewed by Reuters. Her appointment comes a year after BP shifted its strategy back toward oil and gas.
O’Neill officially assumed the role on Wednesday, becoming BP’s fourth CEO since 2020 and the company’s first external leader in more than 100 years. She is also the first woman to head one of the world’s five largest oil companies.
Previously a senior executive at Australia’s Woodside Energy and Exxon Mobil, O’Neill takes charge as BP moves away from a strategy that heavily emphasized renewable energy investments.
“Clear direction and consistency”
“I believe we can safely accelerate performance and drive innovation, sustainability and growth,” O’Neill said in the staff note seen by Reuters. “I’m committed to providing clear direction and consistency so we can move forward together with confidence.”
She joins BP alongside new chairman Albert Manifold, who took up the position in October and has emphasized the need to further reshape the company’s asset portfolio to improve returns. Manifold has faced pressure from activist investor Elliott Investment Management, one of BP’s largest shareholders, which has criticized the company’s recent performance.
As part of BP’s restructuring efforts, Manifold recently announced a streamlined board of directors. Among those stepping down was former Shell chief financial officer Simon Henry, with the company saying a smaller board would enable quicker decisions and stronger oversight during its strategic overhaul.
BP has already scaled back billions of dollars in planned renewable energy investments, while committing to sell $20 billion in assets by 2027 and reduce both debt and costs. The company’s net debt declined to $22 billion from $26 billion in the fourth quarter of last year, and BP reaffirmed its target to bring that figure down to between $14 billion and $18 billion by 2027.
The company also halted its share buyback programme in February as it focuses on reducing debt and directing more investment toward oil and gas developments.
Leave a Reply