BP – Murray Auchinloss anointed as CEO
- Interim CEO Murray Auchinloss appointed on a permanent basis
- He has held the interim position since the departure of disgraced predecessor Bernard Looney last September
- Signals no change to strategy to transition from international oil company to integrated energy company
Derren Nathan, head of equity research at Hargreaves Lansdown:
“BP has confirmed overnight speculation that interim CEO Murray Auchinloss, has been appointed to lead the group on a full-time basis. This has been met with a lukewarm response with the shares down 1% at the time of writing. The shares have been drifting whilst the process to appoint a leader has continued, although this also reflects the direction of oil prices. Mr Auchinloss certainly has a job to do to restore investor confidence, and close the valuation gap with arch rival Shell, and an even wider gulf with its US peers. Continuity of the existing strategy is no bad thing but the shape of returns from the growing focus on energy transition technologies still needs to be proved. In the short-term BP’s strong cash flows remain a key area of focus, enabling investment in future proofing the company whilst making supporting a yield of over 5%. Despite cooling energy prices that position does not look under threat. Assuming an oil price of $60 per barrel, some way below the current price, BP should have room to continue growing the dividend, and purchase around $4bn of shares each year.”
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