Latest news with #costreview
Telegraph
05-08-2025
- Business
- Telegraph
BP tears up ‘reset' plan after just six months
BP is tearing up its own 'fundamental reset' plan after just six months as the struggling oil giant faces intense pressure to improve financial performance. Murray Auchincloss, the company's chief executive, said on Tuesday that he and incoming chairman Albert Manifold had agreed to 'conduct a thorough review of our portfolio of businesses'. He added that BP would be 'initiating a further cost review'. It paves the way for more asset sales and cost cuts. In a statement, Mr Auchincloss said: 'This is all in service of accelerating the delivery of our strategy. BP can and will do better for its investors.' The announcement comes just months after Mr Auchincloss unveiled what he said was a 'fundamental reset' of the business, amid intense pressure from activist investor Elliott Management to deliver better returns. Mr Auchincloss junked BP's green energy policies in February and announced plans to sell $20bn of assets by 2027. However, the proposals – which were designed to boost BP's share price – were met with a lukewarm response from investors. Last month Elliott, which has built a 5pc stake in BP, made clear it was still unhappy as it accused the company of ' chronic underperformance ' and called for 'decisive and effective leadership'. On Tuesday, Mr Auchincloss said: 'We are two quarters into a 12-quarter plan and are laser-focused on delivery of our key targets – and while we should be encouraged by our early progress, we know there's much more to do.' BP has been under pressure to boost profits, cut costs and strengthen its board. It has found itself under the gun after a disastrous pivot to renewable energy in 2020. Earlier this year, Shell was forced to deny it was planning to take over its weakened rival. Half-year results announced on Tuesday showed BP's profits tumbled by nearly a third, albeit largely due to weaker oil prices. It reported a 32pc fall in underlying replacement cost profits – the group's preferred measure of profitability – to $3.7bn (£2.81bn) for the six months to June 30. That compares with $5.5bn (£4.1bn) in the same period last year. The company is refocusing on oil and gas in an effort to appease investors. BP has said it wants to increase fossil fuel output from 2.3m barrels of oil a day now to 2.5m barrels a day by 2030, increasing further after that. BP has had a recent run of oil and gas discoveries, including its biggest find in 25 years announced earlier this week. Shares rose 2pc in early trading on Tuesday and are now up 24pc from their 2025 low in April. Maurizio Carulli, global energy analyst at Quilter Cheviot, said: 'There has been huge speculation of late on the fate of BP and whether or not a rival will look to take them out with a merger. If positive results like this continue to be delivered, that speculation may just end up being a blip in BP's long and storied history.' However, Ashley Kelty of investment bank Panmure Liberum, said 'there is little here to show that a recovery is on the cards'. He added: 'Mr Manifold has his work cut out, and with activist investor Elliott turning up the pressure on costs and strategy, he's likely to have a very short honeymoon period on which to deliver. BP remains a laggard vs peers.' Mr Manifold, the former chief executive of building materials group CRH, was a surprise appointment when he was confirmed as BP's new chairman last month. He will replace Helge Lund, whose imminent departure follows his support for BP's disastrous 2020 decision to cut fossil fuel production 40pc by 2030 and become an 'integrated energy company' focused on low-carbon energy.
Wall Street Journal
05-08-2025
- Business
- Wall Street Journal
BP Pledges Further Cost, Portfolio Review
BP said it would launch a new cost review and evaluate its portfolio, as the oil major presses ahead with a plan to address investor concerns. The London-based company said Tuesday that second-quarter underlying replacement-cost profit—a metric similar to net income its U.S. peers report—was $2.35 billion compared with $1.82 billion analysts had expected, according to a company-compiled consensus.
Bloomberg
03-06-2025
- Business
- Bloomberg
IDP Education Reviews Costs As International Student Numbers Dip
Student placement group IDP Education Ltd. is undertaking a detailed cost and productivity review, as the international student market continues to be hit by global policy uncertainty. Sydney-listed IDP said there was heightened unpredictability in the UK, with further restrictions on student immigration expected, while the international student environment in the US was increasingly negative. Restrictive policies remained in place in Australia and Canada.
