BP's new chair pledges more asset sales, 'urgency' in cost-cutting

[BP Filling Station Signage]
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New BP (NYSE:BP [https://seekingalpha.com/symbol/BP]) Chair Albert Manifold told employees in an internal memo that the company's portfolio was "overly complex [https://www.reuters.com/business/energy/new-bp-chair-urges-asset-sales-faster-execution-strategy-shift-internal-memo-2025-10-01/]" and it needed to be faster in executing its strategy of shifting focus back to oil and gas, Reuters reported Wednesday.

BP (NYSE:BP [https://seekingalpha.com/symbol/BP]) will need to "carefully look at our portfolio" and take urgent action to turn around the company and boost returns for shareholders, said Manifold, who started in the Chair role this week, succeeding Helge Lund, who was criticized by investors for his ties to previous CEO Bernard Looney, who oversaw BP's ill-fated foray into renewables.

BP (BP [https://seekingalpha.com/symbol/BP]) already has set a target to raise $20 billion from asset sales to help lower its net debts from $26 billion to $14 billion-$18 billion by the end of 2027, and Manifold said "some of the assets we currently own may be more valuable to others... We need to increase our profitability."

"We need to redouble our efforts to ensure we are as competitive as we can be with regard to costs and efficiency," Manifold said in the memo.

Manifold pledged his "full support" for CEO Murray Auchincloss and his leadership team in the message.

BP’s (BP [https://seekingalpha.com/symbol/BP]) stock is down ~10% since Looney announced his net zero ambitions in 2020, and trades at 13x estimated earnings, well below Exxon and Chevron, at 17x and 20x times, respectively.

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