Written by Arenima Kumar and Niha Sakoy
(Reuters) – BP CEO said a target to increase the renewed generation 20 times by 2030, as it has returned to focus on fossil fuels, as part of the transformation of the strategy announced on Wednesday to address investor concerns about profits.
Reuters reported in October that the shares of BP have weak -performance competitors in recent years, and has already dropped the oil specialization aimed at lowering the oil and gas output by 2030.
On Wednesday, when BP has capital market day, CEO Murray Auchincloss will inform investors that the company gives up its goal to develop its renewed capacity 20 times between 2019 and 2030 to 50 GB, two sources near the matter said. The target’s drop -down plan has not been reported before.
BP refused to comment.
Its profit reports show that the company has 8.2 GB of renewable generation capacity, for the year 2019, which reached a net wind generation in BP 926 MW. It did not give a number in the total renewable ability of that year.
The sources said that BP will give up a goal to reach the basic profits of $ 49 billion this year, instead set an annual growth goal. They rejected their name because they were not allowed to publicly talk about changing the strategy.
While BP said in a call with analysts, he could drop goals, but he has not officially announced any decision. BP failed to reach EBITDA’s 2024 goal of 40.9 billion.
The sources said that the company will develop general plans to strip assets and reduce other low -carbon investments to reduce debts and enhance revenues.
On February 11 in New York, it was already scheduled to be changed to Wednesday in London because Auchincloss had to undergo a medical operation.
Transform the sector
Through the energy sector, the major companies that transformed their portfolios in response to the need for a decrease in carbon emissions alone to climate change in focusing on oil and gas, as the returns became easier with the recovery of fossil fuels from its lowest levels in the epidemic.
The investor environment has also been transformed through the re -election of US President Donald Trump, skeptical of climate and fossil fuel defender.
The pressure became intense on the BP after the active investor Elliott Investment Management built a share of approximately 5 %.
Elliot, known to pay changes in companies such as Honeyweell and SouthWest Airlines, demands a comprehensive reform, including the most strict cost discipline in BP.
A separate source familiar with the matter was told Reuters, that Elliot wanted BP to reduce green energy spending and sell assets such as wind and solar energy.
https://media.zenfs.com/en/reuters-finance.com/91647ff28d219d8c63d71aa71145cec0
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