Activist Elliott is building stocks in oil major BP, sources say
Anousha Sakoui
(Reuters) – Activist Investor Elliott Investment Management has built up stocks in oil major BP.
The sources did not provide stock sizes.
US-based Elliott aims to increase shareholder value by urging BP to consider transformational measures, Bloomberg News called Elliott’s shares “important.”
Elliott and BP declined to comment.
Activist investors view BP as undervalued, Bloomberg reported. According to LSEG data, BP’s market capitalization is around £69 billion ($8.562 billion), which is about £161 billion, less than half the value of its rival shell.
Earlier this week, BP said it plans to sell German refinery sites with plans to reduce the company’s costs at least $2 billion by the end of 2026.
BP CEO Murray Auchicloss is committed to rebuilding investors’ trust. In January, the company said it would cut more than 5% of its global workforce.
Auchicloss is also about to regain his confidence after his predecessor, Bernard Droney, suddenly set off in September 2023.
Aucincloss, who took office a year ago, will be laying out a new strategy on Investor’s Day, February 26th. He has already taken major steps to reverse his predecessor’s strategy of moving away from oil and gas.
UK oil producers have warned that quarterly profits will decline by up to $300 million due to reduced margin refining and the impact of turnarounds and maintenance activities.
Other global refiners in January were little optimistic about short-term improvements in profits after a slump in margins on fuel production.
BP reported its fourth quarter and full year results on February 11th.
Elliott has become one of the most influential activist investors with assets of around $70 billion and recently called for a farewell in Honeywell. The fund also built a 3.2% stake in Anglo-American after London-listed miners became the target of acquisitions by larger rival BHP groups.
($1 = 0.8059 pounds)
(Reporting by Anousha Sakoui and Gursimran Kaur, Editing by Timothy Heritage and Diane Craft)