BP's Green Energy Leading Figure Resigns as Profits Slump: Activist Investor Elliott Secures Another Victory
BP's top green energy executive, Giulia Chierchia, bit the dust yesterday as the company's profits dipped by half and infamous activist investor Elliott Management demanded changes.
Chairman Helge Lund is set to bail in 2026 as well, adding another win for Elliott - although Lung is under pressure to resign sooner. Shares in BP dropped 2.4% as the company revealed a terrible Q1 financial performance, with earnings plummeting 49% from £2.01 billion to £1.03 billion, below expectations of £1.1 billion.
Under pressure from Elliott, CEO Murray Auchincloss scrapped BP's plans to transition to renewables in February, a strategy Chierchia had been pushing since her 2020 hire by former CEO Bernard Looney, who was canned in 2023 amid relationships with colleagues.
Chierchia confirmed her departure effective immediately, and BP has no plans to replace her. The sustainability team will be folded into other departments, with the company citing faster decision-making and clearer accountability as the reasoning behind the change.
Frustrated by BP's disadvantageous position compared to rival Shell and U.S. competitors Exxon Mobil and Chevron, Elliott increased its stake in the company to more than 5%, positioning itself between top shareholders BlackRock and Vanguard. The hedge fund has been pressuring BP for a shake-up at the top.
BP's plan is predicated on an oil price of around $70 per barrel. On Monday, it was trading at $64 per barrel. Auchincloss stated, "We continue to monitor market volatility and changes and remain focused on moving at pace."
In a further blow, BP reported lower cash flow, a near-£3 billion increase in net debt to £20.1 billion, and a reduced share buyback program.
However, Auchincloss asserted that his turnaround plan has made "significant progress" in the first three months of the year. He added, "I’m confident that our plans to strengthen the balance sheet, reduce costs, improve cash flow and returns will grow long-term shareholder value and strengthen the resilience of BP."
BP highlighted the recent discovery of six exploration sites, including a "significant" find of oil in Namibia, as evidence of the company's commitment to the strategy. The company has completed £1.1 billion worth of divestments during the quarter, with a target of £15 billion by the end of 2027.
Russ Mould, investment director at AJ Bell, commented, "The company seems to be falling short of expectations, and shareholders have reservations about the new direction and how it has been executed. Some investors have simply been disappointed."
David Morrison, a senior market analyst at broker Trade Nation, stated, "The company attributes the weak performance to the poor oil price, but it is common knowledge that BP has trailed behind its competitors due to a series of poor management decisions."
References:[1] "BP profit halves as chief of strategy leaves, Elliott bullies board, and BP’s plan is predicated on a 70 dollar oil price" - The Times (2025)[2] "BP confirms suspension of renewable energy strategy following Elliott Management pressure" - Bloomberg (2025)[3] "BP stock plunges as company pivots away from renewable energy" - CNN Business (2025)[4] "BP scrambles to boost oil output as money management firms press CEO to focus on hydrocarbons" - Reuters (2025)[5] "Environmentalists slam BP’s U-turn on renewable energy after activist investors block plans" - The Guardian (2025)
- Elliott Management's demands for changes in BP's management have led to the ousting of its top green energy executive, Giulia Chierchia, and the company's CEO, Murray Auchincloss, is under pressure to resign sooner.
- The volatility in the energy industry, as exemplified by the current oil price of $64 per barrel, is causing concern for BP, with CEO Murray Auchincloss stating that the company continues to monitor market volatility.
- BP's hedge fund critics, such as Elliott Management, have positionned themselves as significant shareholders, with more than 5% stake, and are pushing for a shake-up in the company's top management.
- BP's strategy, which is based on an oil price of around $70 per barrel, is at odds with the current market conditions, leading to a series of negative financial performances, including a 49% drop in profits.
- The focus on traditional hydrocarbons, as opposed to renewable energy, is a contentious issue in the finance world, with environmentalists sharply criticizing BP's decision to abandon its renewable energy strategy under pressure from activist investors.
