BP is gearing up for a pivotal investor day presentation scheduled for 1 p.m. London time, where CEO Murray Auchincloss and other members of the firm's leadership team will unveil the company's new strategic direction. This event comes as BP attempts to reassure investors following a 1.5% drop in its shares on Wednesday morning. The London-listed company, which has trailed behind industry rivals in recent years, aims to reset its strategy to enhance financial performance and address ongoing investor concerns.
In a bold move, BP plans to increase its annual investment in oil and gas to $10 billion through 2027. This decision is part of a comprehensive strategy overhaul intended to stabilize its financial footing. Additionally, BP targets $20 billion in divestments by the end of 2027, aligning with its broader objective to streamline operations and focus on core strengths.
"Today we have fundamentally reset bp's strategy," said BP CEO Murray Auchincloss.
Auchincloss, who assumed leadership on a permanent basis in January last year, faces significant pressure to prove that BP is on the right track. The investor day presentation serves as a critical platform for the company to clarify its new direction and demonstrate commitment to improving financial outcomes.
BP plans to adjust its annual capital expenditure to a range between $13 and $15 billion over the same period. This recalibration is part of the firm's efforts to optimize resource allocation while maintaining a balanced approach to growth and sustainability.
The Capital Markets Update scheduled for Wednesday afternoon will provide further insights into BP's revamped strategy. Investors and stakeholders will be keenly observing how the company plans to execute its vision and tackle challenges that have previously hindered its progress.