Surprise!! BP CEO Backing Away From Climate Goals After They Only Made $14 Billion In 2023: Not Really "Targets"

BP’s new chief executive has claimed he can stick to the green goals set by his predecessor without risking shareholder returns by adopting a “more pragmatic” approach. However, Murray Auchincloss said BP’s previous “aim” to reduce oil and gas emissions by between 20-30% from 2019 levels by the end of the decade was not confirmed as a “target” – and would only become one depending on a number of final investment decisions ahead.

Auchincloss, who replaced Bernard Looney on a permanent basis last month, said BP would create a higher value company for shareholders by moving towards its climate aims “without wasting money”. He told the Guardian that BP’s plan to transform from an oil company to a net zero carbon energy company by 2050 remained. “The destination is unchanged but we will get there as a much simpler and more pragmatic company, and we will move at the pace that society demands,” he said.

The former chief financial officer used his first set of financial results as CEO to assure investors that he would protect shareholder value by setting out plans to return more cash to investors. BP will spend $3.5bn on share buybacks over the first half of this year, and at least $14bn over the next two years.

The move prompted criticism from campaigners, who said the “excessive” payouts would be better spent on investing in the green transition. The company spent six times more on shareholder distributions last year compared with its investments in renewable energy, according to the IPPR thinktank. BP set out plans to accelerate its share buyback programme alongside its financial results, which showed that profits halved last year to nearly $14bn (£11bn) after weaker oil and gas market prices caused revenues to slump across the industry. The better than expected annual profits were still the second-highest reported by BP since 2012.

EDIT

https://www.theguardian.com/business/2024/feb/06/bp-profits-halve-oil-gas-share-buybacks