BP Appoints Former CRH CEO as New Chairman Amid Strategic Shift

British Petroleum (BP.US) has announced the appointment of Albert Manifold, the former CEO of building materials manufacturer CRH, as its new chairman, effective from October. Manifold will succeed Helge Lund, who has been under pressure from activist investors to restart strategic adjustments and turn around the company's struggling stock performance. BP is currently in the midst of a significant strategic transformation, aiming to reverse its declining stock price and reduce expenditures on renewable energy projects.

Manifold, who has no prior high-level experience in the energy sector, is expected to bring a fresh perspective to BP. During his 11-year tenure at CRH, he successfully restructured the company's asset portfolio and relocated its primary listing to New York, resulting in a near fourfold increase in its stock price. Analysts suggest that Manifold's experience could be beneficial for BP as it navigates its own transformation.

The appointment comes at a time when BP is facing market speculation about potential acquisitions and divestments. The company has been under scrutiny for its aggressive foray into renewable energy under the leadership of former CEO Bernard Looney, which has not been well-received by investors. Lund, who has been the chairman since 2019, has seen the company's stock price decline by nearly 30% during his tenure.

The decision to appoint Manifold was driven by the need to address the company's strategic direction and investor concerns. Activist investor Elliott, which holds over 5% of BP's shares, has been vocal about the need for cost-cutting measures, asset sales, and a refocus on the core oil and gas business. The investor has been pushing for these changes since April, when Lund's re-election support rate dropped significantly.

The search for a new chairman was led by Amanda Blank, a senior independent director at BP. She highlighted Manifold's track record as evidence of his suitability for the role. "His past performance demonstrates that he is the ideal candidate to oversee BP's next phase of development," she stated.

The appointment of Manifold is seen as a strategic move to address the concerns of activist investors and to reposition BP for future growth. The company's new CEO, Murray Auchincloss, who took over in January 2024, has already announced plans for reform. The transition to a new chairman is expected to provide a fresh start for BP as it continues to navigate the challenges of the energy sector.