BP investors are looking for a strategy update from new chief executive

02 February 2024 , 16:09

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BP is set to reveal its profits next week (Image: PA Archive/PA Images)

BP's new boss, Murray Auchincloss, is set to make his debut next week since being appointed permanently.

Hopes are high that BP can match Shell's strong results, which saw their shares rise after making £5.8 billion in the last three months of 2023. However, it's still uncertain whether BP can deliver a similar surprise when they reveal their performance to shareholders on Tuesday.

The company's preferred measure, underlying replacement cost profit, is expected to be £2.19 billion. Mr Auchincloss took over as BP's chief executive permanently last month.

He had been acting in the role since September until a permanent replacement for Bernard Looney was decided upon. Many see Mr Auchincloss as the continuity candidate, having been Mr Looney's chief financial officer for most of his tenure.

Investors will now be watching to see if they can expect more of the same under his leadership, or if changes are on the horizon. Shortly after taking over, Mr Looney announced an ambition for BP to go "net zero" by mid-century.

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Investors voiced concerns that this plan has lowered the share price of the FTSE 100-listed oil producer, and are calling for a change in direction. Russ Mould and Danni Hewson at AJ Bell. said: "Analysts will then look to new chief executive Murray Auchincloss for an update on BP's strategy, following the sudden departure of its architect, Mr Looney, poor share price performance relative to its oil major peers and also the arrival of an activist shareholder on its register."

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Lawrence Matheson