British oil giant BP is facing pressure from activist investor Elliott Management to scrap all its renewable energy projects. The hedge fund, which owns a 5% stake in the company, believes BP lacks the expertise to deliver cheap solar and wind farms, despite being supportive of its electric vehicle charging network.
BP announced last week that it would slash renewable energy investment by $4 billion per year, but Elliott demands a complete overhaul. The company plans to boost funding for oil and gas extraction to $10 billion annually and grow production to 2.3-2.5 million barrels of oil per day by the end of the decade.
Elliott is unhappy with BP’s strategy reset, which it believes lacks urgency and ambition. The hedge fund has urged BP to focus on cash generation and shareholder returns over green ambitions. This has prompted speculation that BP may need to make further changes to satisfy its third-largest shareholder.
Despite the pressure, analysts remain divided on whether BP is a buy or sell. The stock currently has a Moderate Buy consensus rating based on five Buys, six Holds, and one Sell assigned in the last three months.
Source: https://www.tipranks.com/news/elliott-pushes-oil-giant-bp-to-ditch-all-renewables