Sarah McFarlane and Shadia Nasralla
(Reuters) – An activist investor Elliott management has met several major shareholders in the BP to try to establish a consensus for more changes in the petroleum product, which could include reduction of costs and potential removal of leadership, two shareholders told Reuters.
The BP section has been a weaker performance of Shell Exxon rivals in the last five years, which investors have been blamed in part by the company in 2020 to focus on the growth of their renewable business while reducing oil and gas production and gas production.
Giving up on that plan, the BP accelerated its turn back to the hydrocarbons in the renovation strategy last month.
But the two shareholders, who attended separate meetings with Elliott, said they and Elliott wanted deeper changes. Elliott refused to comment. It has almost 5% of the BP share, the source told Reuters before.
BP spokesman said the executives met investors who held almost half of the company’s shares and approached 75% of institutional investors, since he announced a new strategy on February 26.
“We have received wide support for the BP’s reset strategy and changes carried out,” a spokesman said. “The consistent message was also received that our focus should be on delivery – performing a strategy and hitting our goals. This is our priority.”
Pressure for reform mounted after Elliott, who led campaigns for changes in companies, including the Nafta Marathon, Hess and Honeywell, became one of BP’s largest shareholders.
Elliott and investors talked about potential changes in the BP Committee and a team to manage and reduce annual consumption at under $ 13 billion, they announced two shareholders.
For now, BP wants to spend $ 13 to $ 15 billion a year and reduce costs by $ 4 to $ 5 billion by 2027.
One of the shareholders said BP could be more ambitious in the sale of property.
Elliott would like to sell BP a significant part of its gas station network and eventually completely exits the generation of renewable energy sources, said the person familiar with the situation.
BP told the investors that by 2027 he would take away $ 20 billion in assets. The company said it would increase oil and gas consumption, reduce renewable investments and reduce net debt to $ 14 to $ 18 billion by the end of 2027. With currently around $ 23 billion.
The shareholders will vote on whether to re-election the BP Committee, including the chairman of Helge Lund and the executive director Murray Auchincloss, at AGM AGM on April 17.
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