Albert Manifold has not taken long to influence events at BP. Just weeks after formally assuming the chairmanship, the former CRH chief has presided over a sudden change at the top, with Murray Auchincloss making way for former Exxon Mobil executive Meg O’Neill.
The timing surprised investors, but analysts hailed the move as evidence of a more hands-on approach from BP’s new chairman.
For BP, it marks another break with tradition. The company has long liked to promote from within, but it has now turned to outsiders twice: first with Manifold’s own appointment as chairman, and now with O’Neill.
That shift hints at a loss of confidence in BP’s internal succession options after years of strategic recalibration and share price underperformance.
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Auchincloss had begun unwinding BP’s ambitious green energy pivot, which included a pledge to cut oil and gas production by 40 per cent by 2030. That strategy, launched under Auchincloss’s predecessor, Kerry man Bernard Looney, was not popular with shareholders.
Spending on low-carbon energy has since been slashed, while oil and gas production targets have been raised.
BP’s share price has recovered sharply, rising by about a third from its lows earlier this year, suggesting investors have warmed to a more hard-edged focus on cash flow, costs and returns.
However, Manifold’s words suggest a certain impatience with the pace of change. “Progress has been made in recent years, but increased rigour and diligence are required to make the necessary transformative changes to maximise value for our shareholders”, he said, with O’Neill’s mission being to create a “simpler, leaner, and more profitable company”.
Translation: BP is done with half-measures, with green ambitions giving way to a tougher, US-style oil-and-gas-first agenda.
The City reacted positively. JPMorgan welcomed Manifold’s “bold” move, Quilter Cheviot noted his “hands-on approach”, Bernstein endorsed his willingness to “shift up a gear”, while Panmure Liberum’s Ashley Kelty hailed the end of what he described as the “woke management ethos” that prevailed under Auchincloss.
At CRH, Manifold earned a reputation for disciplined capital allocation and decisive action. Whether that translates smoothly to an oil major remains uncertain, but for now analysts seem encouraged by signs of impatience and resolve.
