BP chief executive quits after less than two years

(Sharecast News) - BP's chief executive has stepped down after less than two years in the role, to be replaced by the head of Woodside Energy, Meg O'Neill.

Announcing the move late on Wednesday evening, BP said Murray Auchincloss would leave both the role and board on Thursday. Auchincloss confirmed he had decided to leave after BP appointed Albert Manifold chair in the summer.

He said: "After more than three decades with BP, now is the right time to hand the reins to a new leader.

"When Albert became chair, I expressed my openness to step down were an appropriate leader identified who could accelerate delivery of BP's strategy."

Auchincloss became interim chief executive in September 2023, following the abrupt departure of his predecessor Bernard Looney. Auchincloss took on the role on a permanent basis in January 2024. One of his first decisions was to bow to shareholder pressure and reverse moves by Looney to transform BP into a green energy giant.

Manifold hinted that further change could yet be on the cards, however, with the appointment of O'Neill, the first outsider to lead BP in its 116-year history.

Manifold said: "Her proven track record of driving transformation, growth and disciplined capital allocation makes her the right leader for BP.

"The board believes this transition creates an opportunity to accelerate our strategic vision to become a simpler, leaner and more profitable company."

O'Neill, who has been chief executive of the Australian oil and gas firm since 2021, will also be the first woman to lead BP on a permanent basis.

Veteran BP director Carole Howle, executive vice president, supply, trading and shipping, is taking over as interim chief executive ahead of her joining.

Prior to joining Woodside in 2018, O'Neill spent 23 years at ExxonMobil.

Kathleen Brooks, research director at XTB, said: "O'Neill is an outsider and may just be what the company needs to shake up its culture and boost its share price, which continues to lag its peers.

"This is a muscular hire from BP and suggests a break from the past."

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "Auchincloss's future has been in the balance ever since activist investor Elliott Investment Management took a 5% stake in BP.

"Chair Helge Lund went earlier in the year and the legacy clear-out is now complete."

According to the Financial Times, citing unnamed sources close to the hedge fund, Elliott is backing O'Neill's appointment, viewing it as evidence the company is executing its turnaround plan under Manifold.

Since joining BP, Manifold has met with leading investors and launched a strategic review.

He is due to unveil his initial findings in Febuary.

Looking to BP's future, Nathan added: "With the sector facing pressure, consolidation is the talk of the town. But BP is most frequently seen as a prey rather than the hunter. Rival Shell has distanced itself from takeover speculation, but there are other potential suitors.

"O'Neill may have a fight on her hands to ensure BP is not sold for a song, and to keep a seat at the table if it were to join forces with a competitor."