Activist investor Elliott Investment Management has acquired a significant stake in BP Plc , it emerged over the weekend, adding pressure on the British oil major to reassess its strategy after years of underperformance.
The size of Elliott's stake was unknown, but according to Bloomberg, the fund was reportedly pushing for transformative measures to boost shareholder value.
BP's shares had struggled in recent years, trailing behind rivals like Shell and ExxonMobil, with investors voicing frustration over the company's financial underperformance, high debt levels, and a lack of strategic clarity.
Much of the dissatisfaction stemmed from former chief executive officer Bernard Looney's pivot toward green energy, a move that has yet to deliver the expected returns.
His successor, Murray Auchincloss, was now under growing pressure to refocus on BP's core oil and gas business.
Auchincloss, who took over after Looney's abrupt departure in 2023, had already initiated cost-cutting efforts, including workforce reductions and project cancellations.
He was set to present BP's new strategy on 26 February, where investors expected a clearer shift back to traditional fossil fuel operations.
However, BP warned of up to a $300m drop in quarterly profit due to weaker refining margins and maintenance activity.
Elliott, known for aggressive activist campaigns, has a history of pushing for corporate breakups and strategic overhauls.
The firm recently played a role in Honeywell's decision to split into separate entities and had taken stakes in Anglo American and Smiths Group.
Its move into BP came amid broader industry discussions about consolidation, with some analysts speculating that BP could become a takeover target.
BP was set to release its fourth-quarter earnings on 11 February.
Reporting by Josh White for Sharecast.com.