BP shares rose by 6.29% in early trading on February 10, 2025, in London following reports that activist investor Elliott Management has acquired a stake in the company. This development raises the possibility of pressure on BP to alter its operations in the oil and gas sector.
- BP shares rose 6.29% after news.
- Elliott Management builds stake in BP.
- BP to unveil fourth-quarter results soon.
- Concerns over BP's strategic direction persist.
- CEO plans $2 billion in cost savings.
- Speculation about BP as a takeover target.
BP has been facing challenges, with its stock underperforming compared to peers like Shell over the past year. The company is scheduled to announce its fourth-quarter results and broader strategy on February 26, 2025. Elliott Management’s involvement could lead to significant changes in BP’s management and operational strategy, as the hedge fund is known for advocating for corporate restructuring.
Analysts from RBC suggest that Elliott may push for a strategic review of BP’s core oil and gas segment, potentially advocating for a separation of these assets from BP’s renewable energy initiatives. This follows Elliott’s previous actions with Canadian energy company Suncor, where it called for board enhancements and a strategic review.
BP’s recent trading update indicated higher corporate costs and lower refining margins, alongside plans to cut 4,700 jobs as part of a cost-saving initiative. CEO Murray Auchincloss aims to restore investor confidence amid rising concerns about BP’s strategic clarity in the face of fluctuating crude prices and ambitious renewable energy goals.
The rise in BP’s shares reflects investor optimism regarding Elliott Management’s potential influence on the company. As BP prepares to unveil its financial results and strategic direction, the market will be closely watching for any indications of significant changes in its operational focus.
