Energy
Tuesday, January 30th, 2024 5:11 pm EDT
Key Points
- Bluebell Capital Partners, an activist investor, urges BP to reconsider its strategy of reducing fossil fuel investments in favor of clean energy, claiming the success of this strategy is “highly debatable.”
- Giuseppe Bivona, co-chief investment officer at Bluebell, criticizes BP’s depressed share price relative to peers, attributing it to the strategy of shrinking its core business in oil and gas and venturing into clean energy.
- Bluebell’s letter to BP’s chair questions the assumption of a drastic decline in oil and gas demand, deeming it “utterly unrealistic,” while BP defends its strategy, welcoming constructive engagement with shareholders.
Bluebell Capital Partners, an activist investor, is urging BP to reconsider its strategy of reducing fossil fuel investments in favor of clean energy, stating that it is “highly debatable” whether BP can succeed in clean energy. Giuseppe Bivona, partner and co-chief investment officer at Bluebell, criticized BP’s depressed share price relative to peers, attributing it to the strategy of shrinking its core business in oil and gas. Bluebell’s letter to BP’s chair and CEO questioned the assumption of a drastic decline in oil and gas demand, calling it “utterly unrealistic.” BP defended its strategy, welcoming constructive engagement with shareholders. Bluebell, previously active against companies like Danone and Glencore, believes that BP’s shift to net zero emissions by 2050 is unlikely and suggests adapting the strategy to reality. Bivona considers BP’s recent adjustment of emission-cutting plans a “clear admission” of a strategic mistake and advocates for further adjustments. BP is set to release its Q4 and full-year 2023 results on Feb. 6.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/30/bp-activist-investor-urges-oil-giant-to-scale-back-green-pledges.html
