BP Announces Strategic Reset Amid Profit Declines

BP CEO Murray Auchincloss announced a 'fundamental reset' of the company’s strategy, set to be unveiled on February 26, in response to financial underperformance and pressure from activist investor Elliott Investment Management. BP reported a significant drop in annual profits to $8.9 billion from nearly $14 billion in the previous year, with fourth-quarter profits also sharply declining. The reset aims to improve cash flow and returns, with a possible shift back to a stronger focus on oil and gas, cutting some low-carbon investments. Auchincloss highlighted new projects and capital spending reductions on renewables, indicating a strategic pivot under investor pressure. Elliott's involvement has raised expectations for potential board changes and a portfolio reevaluation to enhance shareholder value. The situation reflects broader industry trends where major players like Shell are also reassessing their renewable energy commitments.