New BP Chairman Albert Manifold has told employees that the company’s portfolio is “overly complex” and needs to accelerate its strategy of refocusing on oil and gas. Manifold, who assumed his role on Tuesday, succeeds Helge Lund. BP is an integrated energy company, delivering heat, light, and mobility products and services to customers around the world. It explores for, produces, and refines oil, and also has growing renewable energy and biofuels businesses.
In an internal memo seen by Reuters, Manifold indicated that some current assets might be more valuable to other entities and stressed the necessity of increasing profitability. This statement aligns with BP’s commitment to divest $20 billion in assets to reduce its net debt from $26 billion to between $14 billion and $18 billion by the end of 2027.
Manifold also acknowledged the company’s financial challenges, noting lower profitability and significant debt. Despite this, he affirmed that the strategic direction is correct but requires faster execution. A BP spokesperson declined to comment on the memo.
Prior to joining BP, Manifold served as CEO of CRH, an Irish building materials company, for 11 years. During his tenure, CRH’s shares increased nearly fivefold as the company restructured its portfolio. BP aims to increase its cash flow from approximately $8 billion last year by around 20% annually through 2027, potentially reaching nearly $14 billion by the end of that period. Activist investor Elliott, holding over 5% stake in BP, has advocated for cost and spending reductions to achieve even higher cash flow.
