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BP said it would invest more in oil and gas as it pivots away from its low-carbon strategy.
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BP said it would increase its annual oil and gas investment to about $10 billion and cut annual capital expenditure to between $13 billion and $15 billion through 2027.
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Shares of BP have underperformed those of its rivals as it stuck with a strategy focused on renewable energy.
BP (BP) said it would invest more in oil and gas as it pivots away from its low-carbon strategy.
The British energy giant said it would increase its annual oil and gas investment to about $10 billion and cut annual capital expenditure to between $13 billion and $15 billion through 2027. It also said it is planning $20 billion in divestments, including a strategic review of its Castrol lubricants business.
“Today we have fundamentally reset BP’s strategy,” BP CEO Murray Auchincloss said. “We are reducing and reallocating capital expenditure to our highest-returning businesses to drive growth.”
Amid reports last month that BP was under pressure from activist investor Elliott Investment Management, Auchincloss had pledged that he would announce a strategy that would “fundamentally reset” its direction. As BP stuck with a strategy focusing on renewable energy, its shares underperformed those of rivals like ExxonMobil (XOM) that had boosted their oil and gas investments.
BP shares, which had declined roughly 6% over the past 12 months entering Wednesday’s session, were down 2% in premarket trading.
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