BP Pledges Strategic Reset As Annual Profits Drop Below $9 Billion

BP CEO Murray Auchincloss has vowed to implement a fundamental strategic reset after the company reported a 35% drop in annual profits, falling short of analysts' expectations, Reuters’ Arunima Kumar reported.

BP has underperformed its competitors, increasing pressure on Auchincloss to deliver a turnaround strategy. I Photo: bp Facebook

BP’s annual profit declined to $8.9 billion, following reports that Elliott Investment Management has acquired a stake in the company, intensifying calls for strategic changes.

The oil major also posted a 61% year-on-year decline in fourth-quarter profits, marking its weakest quarterly earnings since Q4 2020, when pandemic lockdowns sharply reduced oil demand.

BP joins other major oil companies that saw earnings decline throughout 2024, following record profits in the previous two years when post-pandemic economic recovery and the Ukraine war drove energy prices to record highs.

However, BP has underperformed its competitors, increasing pressure on Auchincloss to deliver a turnaround strategy.

Despite the weak earnings report, BP’s stock remained relatively flat on Tuesday, dipping 0.1% to 464.75 pence by 10:21 GMT. Shares at one point had rallied sharply on expectations that Elliott’s undisclosed stake acquisition could drive boardroom changes and corporate reforms.