BP hires first female boss as chief executive steps down

Russ Mould, investment director at AJ Bell, said: “The departure of Murray Auchincloss as BP CEO probably can’t be chalked up as a major surprise, but the timing and suddenness of it can be.

“Auchincloss has struggled with the difficult task of turning around BP’s fortunes since replacing Bernard Looney on a permanent basis less than two years ago. Looney left under a cloud regarding his personal conduct and after having commenced on an ambitious energy transition strategy that hit BP’s shares.

“Auchincloss has walked back on BP’s green push but has had his feet to the fire ever since activist investor Elliott joined the shareholder register earlier this year. The ultimate arbiter – the share price – doesn’t speak in Auchincloss’ favour, with a total return of just 5% under his tenure compared with 39% over the same period for the FTSE 100 and 19% for its main rival Shell.

“The appointment a few months ago of a new chair, Albert Manifold, helped to tee up this change. Reportedly the choice of Meg O’Neill from Australia’s Woodside Energy as Auchincloss’ replacement has Elliott’s blessing, which should help give her some breathing space as she looks to implement her strategy when she starts in the role next April.

“Unlike Auchincloss, O’Neill is an outside appointment and this may help her to deliver the radical change needed to get BP back on track. O’Neill previously led a merger with BHP’s petroleum business which helped double Woodside’s oil and gas production, although in share price terms Woodside has notably underperformed BP over her time in charge.”