The BP boss insisted the oil giant has no plans to leave the London stock exchange as first-quarter profits fell.
Chief executive Murray Auchincloss said yesterday that leaving the city is not on the agenda.
This comes as Auchincloss faces pressure to close the valuation gap with competitor Shell and US rivals such as Exxon Mobil and Chevron.
Shell has said it would consider moving its listing to New York over fears the company is undervalued.
Footsie companies from other industries have already left the struggling market, and gaming giant Flutter is the latest major player to announce a move to Wall Street.
Under fire: BP chief executive Murray Auchincloss (pictured) said leaving the city is not on the agenda as he is under pressure to close the gap on Shell and its US rivals.
The London stock market is also in the throes of an “acquisition frenzy” as buyers swarm undervalued companies in search of cheap deals.
Recently announced bids include Australian miner BHP’s £31bn bid for rival Anglo American, which was rejected.
Czech billionaire Daniel Kretinsky is considering another bid for Royal Mail owner International Distributions Services after the board rejected his £3.2bn offer as “opportunistic”. Challenger bank Virgin Money and packaging company DS Smith agreed to sell this year.
Analysts have suggested that BP could be a takeover target, and Shell has been named as a possible bidder.
Auchincloss, who took over after Bernard Looney resigned as boss in disgrace last year, dismissed concerns the oil giant could leave the City.
“It’s not on our agenda,” he said when asked about BP’s share price change. “We only focus on quarterly deliveries.”
BP reported a 45 per cent drop in profits to £2.2 billion in the first quarter as oil and gas prices fell from last year’s highs. An outage at a U.S. oil refinery also hit earnings in the first quarter.
The energy giant announced a further £1.4bn worth of share buybacks as part of its plan to recoup £2.8bn in the first half of the year.
Auchincloss said BP is committed to returning at least £11 billion to shareholders by the end of 2025, provided oil and gas prices remain stable.
BP kept its dividend at 5.8 pence per share and promised to cut costs by £1.6 billion by the end of 2026.
Russ Mould, investment director at brokerage AJ Bell, said: ‘Auchincloss is seeing a huge valuation disparity between BP and its rivals across the Atlantic and will clearly feel that a big part of its mandate is to close that gap.
‘To that end, the company seeks efficiencies and savings through initiatives such as the use of technology and improvements in its supply chain.
“Maintaining the pace of share buybacks demonstrates a commitment to returning cash to shareholders.”
Stuart Lamont, investment manager at RBC Brewin Dolphin, added: “BP has missed earnings expectations due to lower gas prices, weaker margins and operational disruptions.”
But he said the dividend and extension of the share buyback program “will provide shareholders with some comfort.”
