New BP chair will cement move out of green energy

Welcoming the new chairman, Elliott emphasised Manifold’s “track record of delivering shareholder value”, before again setting out the priorities it wants him and the chief executive, Murray Auchincloss, to deliver on. These include deep cost-cutting, cash generation and a refocusing on oil and gas production, away from the renewable energy strategy that until recently was presented as BP’s future.

Elliott’s confidence in Manifold is largely based on the Irishman’s great success as CEO of CRH, one of the world’s largest building materials companies, with products such as cement, ready-mixed concrete and asphalt. In his 11 years in charge, ending last December, CRH’s share price rose by almost 400% as he focused on the firm’s main business, including through a busy programme of acquisitions and sales of non-core assets – something Elliott has been calling for at BP.

The day after Manifold’s appointment, BP said it had sold its US onshore wind energy business – a clear signal about its direction. This sale was already in the works, as part of a dramatic move away from renewables announced in February by Auchincloss. On Thursday BP said it was also pulling out of its planned green hydrogen production facility in Australia.

This will be BP’s second abandonment of renewables, after a failed effort to move “beyond petroleum” two decades ago. This may disappoint those who want the oil and gas majors to lead the transition to the post-carbon economy, but building up the renewables industry may be done better by firms that fully believe in it, rather by those constantly balancing green investments against the capital needs of legacy carbon businesses.

About 70% of the increase in CRH’s share price came after Manifold moved its listing from London to the New York stock exchange.

No one should be surprised if BP joins the troubling exodus of blue chip names from London. But a significant increase in BP’s share price is still needed before Elliott can truly declare victory.

Photograph by Niall Carson/PA Wire