Elliott ups stake in BP as it pivots away from renewable energy
The activist hedge fund agitating for more radical change at BP now has a stake of more than 5 per cent in the oil giant.
Elliott Management passed the disclosure threshold last week and notified BP on Monday, according to regulatory filings.
The group has 5 per cent of BP’s voting rights, a stake worth about £2.8 billion. Its position is held via financial instruments rather than a direct shareholding but it now ranks as the second biggest investor in BP, behind BlackRock on 9.2 per cent and ahead of Vanguard on 4.95 per cent, according to London Stock Exchange data.
• Activist investor calls for leadership change at BP
The disclosure came as Elliott continues to push for BP to go even further in its strategic pivot away from green energy, following the “fundamental reset” unveiled by chief executive Murray Auchincloss in late February.
Elliott wants to see BP further cut its spending and focus on increasing its free cashflow, even at the expense of growing its core oil and gas business, the Financial Times reported. It cited people familiar with discussions, who added that BP should exit its renewable power businesses and warned that “the continued underperformance of BP makes it open to a takeover”.
It first emerged in early February that Elliott had a near-5 per cent interest in BP, which was worth about £3.8 billion after BP’s shares rallied on news of its involvement. However, BP’s shares have fallen by 17.5 per cent since President Trump unveiled his “liberation day” tariffs as the oil price has tumbled on fears of weaker demand — a steeper fall than the 12.5 per cent drop at its rival Shell — suggesting continued disquiet over its strategy.
The disclosure of Elliott’s position came as BP’s strategic U-turn attracted scrutiny from MPs on the business and trade select committee. Liam Byrne, chair of the committee, challenged Louise Kingham, UK country chair at BP, as to whether the group was “putting profit before the planet” and said that as the government raced to cut emissions it “doesn’t seem BP is with the project”.
“Once upon a time BP seemed to be like it was leading green Britain, now you’re lagging green Britain,” Byrne said. Kingham insisted it was still reducing its emissions and in the UK was investing heavily in technologies such as carbon capture and storage.