The activist investor has launched a scathing attack on BP and called on CEO Helge Lund to resign over what he calls the energy giant's “embarrassing” behavior.
The London-listed company overtook British rival Shell and US oil giants Chevron and ExxonMobil, which doubled down on profitable fossil fuels, while BP focused on renewables.
Shareholders were disappointed with BP's green strategy, which sets it apart from its energy peers.
Recent reports suggest that new CEO Murray Auchincloss plans to refocus on oil and gas in response to investor pressure to improve BP's share price and earnings. However, the FTSE 100 company refused to confirm this information and will only inform shareholders about its strategy in February.
Bluebell Capital Partners, a London-based hedge fund, has written twice to its board in recent weeks, criticizing the firm's management and approach.
I'm not impressed: shareholders were disappointed with BP's green strategy
Co-founders Giuseppe Bivona and Marco Taricco called BP's performance “unacceptably dismal.” The company, which holds a small, undisclosed stake in BP, welcomed reports that the company plans to abandon fossil fuel reduction targets.
In its latest letter, Bluebell criticized executives for waiting to tell investors about its green strategy, calling the delay “indefensible and completely outrageous.”
Bluebell successfully campaigned to oust the CEO of Hugo Boss in 2020, and a year later helped oust the head of French consumer goods giant Danone.
However, the company sold its stake in Glencore after lobbying unsuccessfully for the ouster of CEO Gary Nagle this year.
More recently, it has set its sights on private equity giant BlackRock, campaigning to split the dual roles of CEO and chairman held by billionaire co-founder Larry Fink.
Now a hedge fund that has only been around for five years has launched an audacious David and Goliath attack on one of the world's largest oil companies and two highly respected boardroom titans.
He called on Lund, one of Europe's leading industrialists who has chaired BP for five years, to step down. The Norwegian also chairs Danish pharmaceutical giant Novo Nordisk, maker of the weight loss drug Ozempic. He was previously CEO of BG Group before it merged with Shell in 2016.
The hedge fund had insisted that independent director Amanda Blanc, also the chief executive of insurer Aviva and a widely respected figure, step down.
“BP should immediately present an updated strategic plan,” Bluebell said. “Waiting for the full-year 2024 results to be released is a waste of time and creates the false impression that this update is business as usual.
“The update must be a clear acknowledgment of the board's failure. In the meantime, it appears that regulated information is clearly and unacceptable being leaked to the press by company sources in order to reassure the market and “buy more time”. Given the continuing evidence of a grossly mismanaged company, we see no alternative but to remove the CEO and lead independent director.
A spokeswoman for the oil giant said: “As a publicly traded company, BP fully complies with its legal and regulatory obligations.”
Bluebell is a small force that attacks large targets from its headquarters in Belgravia, London. The hedge fund, founded in 2019, became a thorn in BP's side after launching a campaign against its green strategy a year ago.
It came after former boss Bernard Looney, who resigned last year after misleading the board about his relationships, outlined targets for reducing BP's oil and gas production. He initially said fossil fuel production would be reduced by 40 percent by 2030, before reducing the target to 25 percent. Auchincloss is reportedly planning to eliminate the target altogether. BP did not confirm these reports.
“The failure of the current strategy is ultimately reflected in the embarrassing performance of BP's share price relative to peers,” Bluebell said.
According to the Mail on Sunday, BP met twice with Bluebell, one of which was attended by Lund. Bluebell's views are not believed to be widely shared by investors.
“Our extensive and active engagement with shareholders shows that there is no significant support for Bluebell's position,” a BP spokeswoman said.
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