- Manifold hired as new chair
- BP’s strategic overhaul continues
- US onshore wind business sold
BP (BP.) has appointed former CRH (CRH) boss Albert Manifold as its new chair as the energy giant looks to address investor concerns over its strategic direction as well as a poor share price performance which has triggered takeover and break-up speculation.
Shares in the FTSE 100 oil and gas giant gained 1% to 403p in early dealings on news Manifold will succeed Norwegian Helge Lund, who is out the door after a disappointing seven-year stint in the chair.
Manifold’s appointment comes as the energy group slashes green spending and pivots back to oil amid pressure from investors.
Over the weekend, BP took a further step back from renewables by selling its US onshore wind business, BP Wind Energy North America, to North American company LS Power.
PROVEN PEDIGREE
Manifold served as chief executive of Irish-based building materials supplier CRH from January 2014 until December 2024 and was selected by BP for his ‘strong track record of strategic leadership and operational delivery with a focus on cost efficiency, disciplined capital allocation and cash flow generation’.
During his tenure at CRH, shares in the Dublin-headquartered group soared nearly five-fold. CRH reshaped its portfolio and also shifted its primary listing from London to New York in 2023.
Manifold’s appointment as chair of BP will stir speculation the energy group might switch its main stock listing to the US, since he knows the process inside out.
BP’S ‘VITAL ROLE’
One of the key architects of BP’s now-discredited strategy, Lund said he would be stepping down back in April.
Manifold will join BP’s board as a non-executive director and chair-elect on 1 September and formally take over as chair on 1 October, at which point Lund will step down from the board.
‘It is an honour to be appointed chair of one of the world’s great energy companies, and to have the opportunity to help the company reach its full potential,’ said Manifold, who insisted BP has ‘a vital role to play in addressing the world’s growing energy needs.’
BP’s senior independent director Amanda Blanc, who led the succession process, said: ‘Albert has a relentless focus on performance which is well suited to BP’s needs now and into the future.’
WATCHING BRIEF
Russ Mould, investment director at AJ Bell, observed that BP’s announcement focuses on Manifold’s experience in driving cost efficiency, capital allocation and cash flow generation.
‘Stripping out costs, expanding interests in oil and gas, and generating more cash could also lead to a higher share price in time, but investors might not have the patience to wait for the results to feed through,’ said Mould.
‘Instead, the new chair needs to convince the board there are other things that can happen in the meantime to win back the market’s favour,’ added Mould.
He continued: ‘Manifold has good experience as a CEO but not as a chair. It’s a slightly different skillset with less involvement in day-to-day operations and more focus on accountability, governance and direction.
‘The muted market reaction to his appointment is a good indicator that investors aren’t blown away by the choice of new chair. Someone with a track record of keeping CEOs in check would have been a more logical choice. Manifold is an unknown entity in this role so investors can only keep a watching brief for now, rather than celebrate.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (James Crux) and the editor (Ian Conway) own shares in AJ Bell.
