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Irish Times
7 hours ago
- Business
- Irish Times
Albert Manifold, Irish cement veteran hired to chair BP for pivot back to oil and gas
BP has chosen a new chair who built his career not in oil, gas or the City of London, but in gravel, asphalt and cement. The appointment of Albert Manifold , a 26-year veteran of Dublin building materials company CRH , caught many investors and industry insiders by surprise when it was announced on Monday morning. 'It is an underwhelming appointment,' said one executive headhunter. The market reaction was also muted, with no meaningful move in BP's share price despite widespread investor frustration with outgoing chair Helge Lund. But people familiar with Manifold's record argue that behind his low-key persona is the drive, discipline and focus on shareholder returns that BP badly needs. One person who has competed against Manifold on deals described him as a 'shrewd operator' and a 'man on a mission'. READ MORE One of BP's most important investors, activist hedge fund Elliott Management, broadly welcomed the appointment, saying it noted Manifold's 'track record of delivering shareholder value' and that it looked forward to working with him to 'urgently address BP's shortcomings'. [ BP appoints Irishman Albert Manifold as new chairman Opens in new window ] After a failed foray into renewable electricity, the energy major in February pivoted back to focus on oil and gas but has not been rewarded by investors. BP's share price has fallen more than 8 per cent since it unveiled its new strategy, after oil prices slid in the second quarter. In more than a decade in charge of CRH, now the largest building materials supplier in the US, the 62-year-old Manifold overhauled its assets, pushed through transformational acquisitions and moved its primary listing from London to New York. Total shareholder returns during his tenure were 342 per cent, equivalent to an annualised 16.5 per cent, according to Josh Stone, an analyst at UBS. In 2023, Manifold was the third-highest-paid chief executive of a FTSE 100 company, one place above BP's former chief executive Bernard Looney. CRH stated this year that the value of his unvested stock options from 2020 to 2024 was more than $70 million. On Monday, as well as being appointed BP chair from October, he became an adviser to CD&R, the private investment firm where current BP chair Lund is also an adviser. Manifold's experience in boosting CRH's market valuation, especially in the US, was a huge draw for BP, whose share price peaked almost 20 years ago and has been trying to increase the number of American investors on its shareholder register. 'What we really need is somebody that leads the board, leads a strategy and basically somebody that can help in terms of the performance management of the business,' said one person involved in the hunt for the new chair. Manifold's low profile and lack of oil and gas experience was not an issue, the person added. 'A chair is not meant to be the high-profile person. The CEO is the leader of the business. If you look at the way he has delivered at CRH, he has done it in a quiet way. He has not had a public persona as such, but he has delivered incredibly strong performance, and the CRH shareholders were not disappointed.' Manifold, whose parents ran a hardware store in the Dublin suburb of Kimmage, lives in the nearby coastal town of Wicklow and was described by one of his friends as down-to-earth and highly driven. 'There were no corporate jets at CRH, no drivers. Once he needed to see his chair on a Friday night, it was pissing with rain and he just got in his car and drove the 200 miles to get there,' the person said, adding that Manifold had played rugby as a prop forward, as did Peter Sutherland, the last Irish chair of BP. Manifold won the top job at CRH in 2014, when the company was still feeling the effects of the slump in US residential construction following the financial crisis. His first act was a sweeping review of the company's business, according to one senior investment banker close to Manifold. He then pushed through a transformational acquisition, beating private equity firms Blackstone and Cinven to a €6.5 billion deal for a package of assets that EU competition regulators forced cement groups Holcim and Lafarge to sell off when they merged. 'He just knew everything that was going on with his rival bidders,' said one person involved in the process. 'His level of intelligence of the industry and within his PE rivals was excellent. He was always one step ahead of his rivals in the process. The level of connectivity he had gave him an edge.' That deal 'gave them good scale', the banker said, adding that CRH 'only had to do a €1.6 billion equity placement, which was very well supported. The shares performed well and it's gone on from there.' Manifold also brings green credentials. He was president of the industry organisation effort to try to decarbonise cement production and CRH has a target to cut its total carbon emissions by 30 per cent by 2030 from 2021 levels. In an interview with CNBC last year, he described how he had moved CRH up the value chain. 'We don't just provide rocks and cement,' he said. 'We take the rocks and make asphalt, we pave the roads with that asphalt. We maintain the roads and provide the off-ramps, on-ramps and bridge components. We don't just make one sell, we make six sells.' Although he does not have oil and gas experience, Manifold has not had to look far for advice on the BP job. Lamar McKay, the former head of BP's business in the US, is CRH's senior independent director. Bob Dudley, the former BP chief executive, sits alongside Manifold on the board of chemicals company LyondellBasell. Egon Zehnder, the headhunter that oversaw the search for BP's chair, also handled the chief executive succession process at CRH. BP remains under pressure after a turbulent few years and is struggling under heavy debts and from a lack of investor confidence in its strategy. Bloomberg this month described Manifold's new role in an opinion piece headline as 'a thankless job no one wants'. But his supporters back him to turn around the UK energy major. 'He'll want the company to do things that generate cash and give the sort of returns that he wants,' the banker said. 'That's what shareholders will reward.' – Copyright The Financial Times Limited 2025
IOL News
a day ago
- Business
- IOL News
BP appoints new chairman after energy strategy reset
Albert Manifold will be the new chairman of BP. BP on Monday named Albert Manifold as its new chairman, replacing Helge Lund, as the British energy giant undergoes a major strategy shift back to its fossil fuel business. Manifold, who was chief executive of building materials group CRH for a decade, will join the board in September before succeeding Lund as chairman in October. "His impressive track record of shareholder value creation at CRH demonstrates he is the ideal candidate to oversee BP's next chapter," said Amanda Blanc, a senior independent director who led the search for BP's new chairman.
Glasgow Times
a day ago
- Business
- Glasgow Times
BP appoints former CRH boss Albert Manifold as new chairman
Albert Manifold, who was chief executive of CRH for 10 years until last December, will join the oil giant as chairman-elect on September 1 before taking over as chairman on October 1. Mr Lund had announced plans in April to step down 'in due course', but the group said it would probably take until 2026 to find his successor. Albert Manifold (Niall Carson/PA) Shares in BP lifted 1% in early morning trading. Aviva chief executive Dame Amanda Blanc, BP's senior independent director who led the hunt for Mr Lund's successor, said Mr Manifold was 'the ideal candidate to oversee BP's next chapter'. She said: 'Albert has a relentless focus on performance which is well suited to BP's needs now and into the future. 'He transformed and refocused CRH into a global leader.' CRH, which has its headquarters in Ireland, switched its stock market listing from London to New York in 2023 and has since seen its share price rocket by 74%. Speculation has swirled over whether BP will move its London listing to Wall Street after activist investor Elliott Management built up a stake in the group. But BP chief executive Murray Auchincloss has previously dismissed the rumours, saying in April the group had no plans to change its listing. Mr Lund has been chairman since 2019, but he has presided over a more challenging past few years for the firm. He oversaw the hiring of former chief executive Bernard Looney, who quit in September 2023 after failing to disclose his past relationships with company colleagues. Mr Lund also played a key part in overseeing the group setting its net zero agenda, but the firm has since rowed back on the shift towards green energy. BP bowed to pressure from shareholders by vowing to accelerate investment in oil and gas while slashing renewable spending by nearly three-quarters. In a major rebuttal for a FTSE 100 company, Mr Lund received a near 25% vote against his re-election at the firm's annual general meeting in April. Ahead of the AGM, a group of 48 institutional investors had criticised the board for not offering a direct vote on the oil major's revised strategy, while environmental groups fiercely criticised the climate row-back. The vote was largely seen as a protest, as Mr Lund had already announced his departure at the time of the AGM.
Leader Live
a day ago
- Business
- Leader Live
BP appoints former CRH boss Albert Manifold as new chairman
Albert Manifold, who was chief executive of CRH for 10 years until last December, will join the oil giant as chairman-elect on September 1 before taking over as chairman on October 1. Mr Lund had announced plans in April to step down 'in due course', but the group said it would probably take until 2026 to find his successor. Shares in BP lifted 1% in early morning trading. Aviva chief executive Dame Amanda Blanc, BP's senior independent director who led the hunt for Mr Lund's successor, said Mr Manifold was 'the ideal candidate to oversee BP's next chapter'. She said: 'Albert has a relentless focus on performance which is well suited to BP's needs now and into the future. 'He transformed and refocused CRH into a global leader.' CRH, which has its headquarters in Ireland, switched its stock market listing from London to New York in 2023 and has since seen its share price rocket by 74%. Speculation has swirled over whether BP will move its London listing to Wall Street after activist investor Elliott Management built up a stake in the group. But BP chief executive Murray Auchincloss has previously dismissed the rumours, saying in April the group had no plans to change its listing. Mr Lund has been chairman since 2019, but he has presided over a more challenging past few years for the firm. He oversaw the hiring of former chief executive Bernard Looney, who quit in September 2023 after failing to disclose his past relationships with company colleagues. Mr Lund also played a key part in overseeing the group setting its net zero agenda, but the firm has since rowed back on the shift towards green energy. BP bowed to pressure from shareholders by vowing to accelerate investment in oil and gas while slashing renewable spending by nearly three-quarters. In a major rebuttal for a FTSE 100 company, Mr Lund received a near 25% vote against his re-election at the firm's annual general meeting in April. Ahead of the AGM, a group of 48 institutional investors had criticised the board for not offering a direct vote on the oil major's revised strategy, while environmental groups fiercely criticised the climate row-back. The vote was largely seen as a protest, as Mr Lund had already announced his departure at the time of the AGM.
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
BP appoints new chairman after energy strategy reset
Albert Manifold is expected to take on the chairman role at a challenging time for BP, following a difficult trading year. (Business & Finance pic) LONDON : BP today named Albert Manifold as its new chairman, replacing Helge Lund, as the British energy giant undergoes a major strategy shift back to its fossil fuel business. Manifold, who was chief executive of building materials group CRH for a decade, will join the board in September before succeeding Lund as chairman in October. 'His impressive track record of shareholder value creation at CRH demonstrates he is the ideal candidate to oversee BP's next chapter,' said Amanda Blanc, a senior independent director who led the search for BP's new chairman. Manifold will take the role at a challenging time for BP, following a difficult trading year and pressure from investors to boost its share price. BP in February launched a major pivot back to its more profitable oil and gas business, shelving its once industry-leading targets on reducing carbon emissions and slashing clean energy investment. In its first earnings report since the turnaround, released in April, the group said net profit plunged 70% in its first quarter, hit by weaker oil prices.
