BP forced to delay crucial investor meeting as boss recovers from surgery

BP has postponed a crucial meeting with investors while its boss recovers from surgery amid falling profits and a production slowdown.

The FTSE 100 oil giant said yesterday it had delayed next month’s Capital Markets Day to allow chief executive Murray Auchincloss to recover after a “planned medical procedure”.

Meanwhile, BP warned that fourth-quarter profits would be lower than the previous three-month period amid weaker operations in late 2024.

Auchincloss, who replaced former boss Bernard Looney a year ago, is “recovering well” and is expected to return to the office next month, BP said.

But the investor update scheduled for February 11 in New York will now take place in London on February 26.

Investors are eagerly awaiting clarity on BP’s strategy after pressuring Auchincloss, 54, to reverse his predecessors’ shift toward green energy. Shareholders have pressured the Canadian businessman to abandon some climate goals.

Last year it was reported that it planned to abandon its promise to reduce oil production to 2 million barrels per day by the end of the decade.

It comes amid concerns that BP has underperformed its London rival Shell and is lagging behind US peers such as Exxon Mobil and Chevron.

Panmure Liberum analyst Ashley Kelty said: “We remain of the view that the current board does not have the courage to change direction and revitalize the strategy.”

“The pressure will continue to mount on Auchincloss unless he proves he can be his own man and step out of Bernard Looney’s shadow.”

And in a further blow, BP said yesterday that lower refining margins would hit fourth-quarter profits by up to £246 million.

The company’s third-quarter profits fell to the lowest level since the pandemic, falling 30 per cent year-on-year to £1.8bn between July and September last year.

Russ Mould, investment director at brokerage AJ Bell, said: ‘BP’s latest update continues its poor run of news as it suffered impairments and warned of weak refining margins last year.

‘Investors often think of BP and its peers as well-oiled machines, pumping out oil and gas with ease and doling out endless dividends and share buybacks. In reality, they operate in a high-risk environment with unpredictable returns.’

BP said oil prices were markedly lower in the final three months of 2024, at $74.73 per barrel on average, compared with $80.34 per barrel in the third quarter.

Last week, rival Shell also warned of a weak end to 2024 and braced for £2bn in impairments as it cut its production forecasts.