To slash green investment and ramp gas and oil

BP expects it to reduce its renewable energy investments and focus on increasing oil and gas production instead.

Energy giants will underline their strategy later, after the pressure of some investors, its profits and share prices have been much lower than their rivals.

Shell and Norwegian company Iqwinor have already withdrawn their plans to invest in green energy. Meanwhile, US President Donald Trump’s “Drill Baby Drill” comments encouraged investment in fossil fuels and stepped away from low carbon projects.

Some shareholders and environmental groups have expressed concern over any possible ramp on the production of fossil fuels.

Five years ago, BP determined some of the most ambitious goals among large oil companies to cut oil and gas production by up to 40% by 2030, while renewable investment increased significantly.

In 2023, company The target of this oil and gas reduction reduced by 25%.

It is now expected that it is expected to be completely abandoned, while confirming that it is cutting investment in renewable energy, in which Chief Executive Officer Murray Auchincloss called the Achincloss called “Fundamental Reset”.

In 2024, BP’s net income fell from $ 13.8BN to $ 8.9BN (£ 7.2bn) last year.

Mr. Auchincloss is under pressure to promote profits from some shareholders, including the influential activist group Elliot Management, who took out a £ 70 billion stake in a £ 70 billion company to push for more investment in oil and gas.

Since 2020, when former Chief Executive Officer Bernard Loni unveiled his strategy for the first time, shareholders have received total returns including 36% dividends in the last five years. In contrast, shareholders in rivals Shell and Exon have seen a return of 82% and 160% respectively.

Under the performance of BP, there is speculation that it may be an acquisition target or consider transferring its main stock market listing to the US where oil and gas companies take over high evaluation.

Not all shareholders want the company to change the course fundamentally.

Last week, a group of 48 investors asked the company to allow them to vote on any possible plan, which is to move away from their previous commitments.

Royal London Asset Management, a spokesman of a signator, said: “As long -term shareholders, we recognize BP’s previous efforts towards energy infection, but fossil fuel expansion is worried about the company’s continuous investment in fossil fuel expansion Are.”

Environmental Group Greenpeace UK has warned that BP has “expected a challenge at pushbacks and every turn, if it doubles on fossil fuels – not only from green campaigners but from its own shareholders”.

Senior Climate Advisor Charlie Chronic said: “Government policies will also need to prioritize renewable power, and the extreme weather insurance models pressurize – policy maker is looking for fossil fuel profits in a way for extreme weather recovery Put a brake on this U-turn.

AJ Bell analyst Ras Mold said it was one of the most important moments for BP in the last four or five years.

“Other energy companies are clear about their intentions compared to BP,” he said.

He said, “They need to prove people to prove that after a hard operational and share price performance compared to their peers, that they want to do something about it, not just things to flow.

BP has already placed its offshore wind business in a joint venture with Japanese company Jera and is looking to find a partner to do so with its solar business.

Refocus on oil and gas can also see the sale of other businesses so that internal sources described it to get “non-core goods from books”.

Former Chief Executive Officer Lord John Brown said that BP could stand for “Petroleum beyond”, as he launched the first temporary tricks of the company away from oil and gas.

Today’s strategy shift can be called “back to petroleum” – for the happiness of some shareholders and the collapse of others.

Both BP and Elliot Management refused to comment.