LONDON (dpa-AFX) - Bluebell Capital Partners, a well-known activist European hedge fund, recently expressed its concerns over BP plc's energy transition strategy.
The fund's leaders, Giuseppe Bivona and Marco Taricco, criticized BP's plan that projects a significant decline in oil and gas demand as unrealistic and raised doubts about the potential loss of market value and poor returns from the company's solar and wind farm projects.
Bluebell emphasized the significance of BP's focus on areas where it can excel while avoiding ventures with low potential returns. The fund advocated for an increase in near-term oil production and a commitment to emissions reduction in line with societal expectations.
BP has faced criticism from various stakeholders despite its goal to achieve net-zero emissions by 2050. Bluebell Capital Partners asserted that BP's approach has negatively impacted its stock price and challenged the feasibility of its vision for a drastic decline in oil and gas demand.
The former CEO of BP, Bernard Looney, who initiated significant changes within the company, departed amid allegations of improper personal relationships. However, under the leadership of Chairman Helge Lund and CEO Murray Auchincloss, BP continues to support Looney's strategy despite Bluebell's objections.
Although Bluebell's objections carry weight, it holds a relatively small stake in BP and lacks the financial power to compel a shareholder vote. While BP had previously pledged to reduce emissions by 35-40%, it later revised this target to 20-30% as it navigates challenging market conditions. Amidst the pressure from activist investors, BP's approach to emissions targets remains uncertain.
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