BP Picks Construction Veteran to Lead Post-Renewables Pivot

BP has selected Albert Manifold the previous CRH CEO to become its next chairman because the company believes outside leadership will help execute its strategic transformation to enhance its underperforming stock market value.

The new chairman Albert Manifold will assume his position at BP in October after serving as CRH CEO for ten years. BP analysts believe his experience in restructuring and portfolio management will prove beneficial for the company because he does not have direct energy sector background while it reduces its renewable energy goals to satisfy investor demands for oil and gas focus.

Under former CEO Bernard Looney BP's stock price declined by 30% since Helge Lund became chairman in 2019 while the company pursued its green energy strategy. The company's renewable energy strategy failed to win investor backing after former CEO Bernard Looney introduced it because activist Elliott Investment Management now controls more than 5% of the company's shares.

The current CEO Murray Auchincloss has established a back-to-basics approach since January so Manifold will probably focus on additional cost reductions and core hydrocarbon operations.

Amanda Blanc who led the search process described Manifold as the perfect candidate to lead BP toward its upcoming phase. The JPMorgan analysts support the quick leadership transition even though Manifold lacks experience in the oil industry. The selection process included former Centrica CEO Sam Laidlaw and ex-BHP chairman Ken MacKenzie among other candidates.