BP shares: Looney tunes out as CEO
BP chief executive Bernard Looney has resigned with immediate effect, not for financial reasons but due to allegations of impropriety. The 53-year-old has spent his entire career at BP, having joined in 1991.
He’s been behind the move to transform the oil producer into an integrated energy company and navigate the energy transition. What does the move mean for BP's future? Probably more of the same as it has just announced a $10 billion plan in Germany. BP aims to build up to 20 000 fast electric vehicle charging spots by 2030. There are currently about 1,700. It also plans to produce more than 500,000 tons of sustainable aviation fuel at its Lingen refinery in Germany by 2030.
(Video Transcript)
Bernard Looney
BP's Chief Executive Bernard Looney has resigned with immediate effect. Less than four years into the job, the 53-year-old Chief Executive is going not for financial reasons, but following several allegations of personal relationships with colleagues. Let's take a look back at the CV of the man that joined back in 1991. He was just 21 at the time.
He spent his entire career at BP. He was appointed Chief Executive back in February 2020 to transform the oil producer into an integrated energy company and navigate the energy transition. He pledged to cut oil and gas production to reduce carbon emissions while investing in clean energy technologies.
BP's future
But the big question is what it means for BP's future. They've got to find someone in his mould in order to continue what BP was doing, bringing the company very much into the idea of this energy transition. This morning, BP announced a $10 billion plan in Germany.
BP aims to build up to 20,000 fast EV charging spots by 2030. They're about 1,700 now. They also plan to produce more than 500,000 tonnes of sustainable aviation fuel at its refinery in Germany also by 2030. So the company was doing great things in this new environment. But let's take a look at what's happened with the share price chart. Investors won't be looking at this favourably.
BP shares
The stock is down after 20 minutes of the session this morning, down half of 1%. It's not a big move on the way down. But overall, since the company started out, this is when he was appointed. And indeed, he took the reins on the 1st of July at the business. That's when he began. BP shares returned 31%, including dividends, since he started in the job.
It's lower than other oil major companies during the same period. Shell up 46%, Total Energy, Chevron and ExxonMobil also outperforming BP. ExxonMobil up 129%. You've got to remember that ExxonMobil hasn't taken the cost of shifting into new technologies as BP has. But BP is ahead of the game. It's a question of finding someone that's going to sit in his shoes nicely following on from this shock resignation.
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