BP's New Chair Vows to Simplify Portfolio, Accelerate Strategy Amid Elliott Pressure
BP's new Chair, Albert Manifold, has described the company's portfolio as 'overly complex', indicating a need for faster execution of its strategy to refocus on oil and gas. Manifold acknowledged the company's lower profitability and significant debt, stressing the urgency to accelerate its strategic plan.
Manifold, who previously served as CEO of CRH, a building materials company, suggested that some of BP's assets might be more valuable to others, hinting at potential sales. BP's ultimate goal is to grow its cash flow by around 20% each year until 2027, aiming to reach near $14 billion by the end of that period.
Activist investor Elliott, with a stake of over 5% in BP, has pressured the company to cut costs and spending to achieve even higher cash flow. In line with this, BP aims to sell $20 billion worth of assets, aiming to reduce its net debt from $26 billion to between $14 billion and $18 billion by the end of 2027.
BP's new chair, Albert Manifold, has outlined a plan to simplify the company's portfolio and accelerate its strategy. With activist investor Elliott pushing for cost cuts, BP aims to sell $20 billion worth of assets to significantly reduce its net debt by 2027. The company's focus remains on growing its cash flow and refocusing on its core oil and gas business.
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