BP CEO: Company must tighten its spending and maintain financial discipline
Meg O'Neill, BP's CEO, said that the British energy giant must prioritise its financial discipline, by simplifying their portfolio, cutting costs, and tightening up capital expenditure, while focusing on its core investments in oil and gas. O'Neill has worked to restore investor confidence by reducing costs and debt. She took over the role of CEO in April after Murray Auchincloss abruptly left the company last year. Albert Manifold was removed as chair in May over bullying accusations. Manifold denies the allegations.
She said BP should be more selective with its investment decisions, as it resets its strategy after an unsuccessful push in renewables.
O'Neill, on her 100th day in the position, said in a LinkedIn posting: "We must be deliberate in where we invest - and where we do not." "We must make better, fewer choices and be accountable."
She outlined three priorities for making BP more efficient and valuable: operational excellence and improved accountability, as well as a strong discipline on costs, cash, and capital. BP's reorganisation of its business into two segments --?upstream & downstream -- went into effect this month.
O'Neill stated on Thursday that the move would help reduce the complexity at the energy major, as trading will connect the upstream and downstream businesses.
Her 'tenure at BP' began as the U.S. and Israeli war against Iran was disrupting the global energy markets with little shipping going through the Strait of Hormuz.
O'Neill stated that BP's trading teams and shipping units worked with its refinery?unit to help deliver an additional 50 million litres (or more) of diesel to Sydney 'to increase supplies in Australia'. Meanwhile, BP's Castellon refining facility in Spain increased jet 'fuel production 30% in advance of Europe's Summer travel season as a response to the crisis. The crisis helped boost BP’s first-quarter results, with profits more than doubling from the previous year to $3.2 billion.
(source: Reuters)
