BP Names Albert Manifold Chairman Amid Strategy Modification

British oil and gas giant BP has announced the appointment of Albert Manifold as its new chairman, signaling a fresh chapter in the company's leadership. Manifold, who formerly led global building materials group CRH, will take over the reins in October as BP contends with mounting investor concerns over its strategic direction and lacklustre share performance.

Non-Energy Veteran Steps into a Crucial Role

Though Manifold brings no prior experience in the energy industry, his business credentials are solid. During his 11 years at the helm of CRH, the Irish construction materials company underwent a significant transformation, strategically reshaping its global footprint through acquisitions and divestitures. One of his landmark moves was shifting CRH’s primary stock market listing to New York in 2023. Under his leadership, CRH's shares nearly quintupled in value, a track record BP likely hopes to replicate.

"(Manifold’s) impressive track record of shareholder value creation at CRH demonstrates he is the ideal candidate to oversee BP’s next chapter," said Amanda Blanc, BP’s Senior Independent Director, who led the succession process on behalf of the board.

Strategic Overhaul Amid Market Pressures

Manifold’s appointment comes at a pivotal moment for BP, which is undergoing a sweeping strategic review amid ongoing speculation about potential takeovers or even a corporate split. Investors have expressed dissatisfaction with the company’s trajectory, particularly in comparison to peers that have posted stronger performance in recent years. The move to bring in Manifold is widely seen as an attempt to steady the ship and restore shareholder confidence.

Modest Market Reaction to the News

In response to the announcement, BP’s stock edged up slightly in early trading, gaining 0.5% to reach 402.05 pence in London. While the immediate market reaction was muted, investors will be watching closely to see how Manifold influences BP’s long-term direction.

Departure of Helge Lund and Investor Discontent

Manifold replaces Helge Lund, the Norwegian executive who has chaired BP since 2019. Lund's leadership came under scrutiny after he supported former CEO Bernard Looney’s aggressive push into renewable energy, an initiative that failed to win widespread shareholder approval. His position became increasingly tenuous following pressure from activist fund Elliott Management and dissatisfaction voiced by environmentally conscious stakeholders.

A Competitive Selection Process Behind the Scenes

Before settling on Manifold, BP reportedly considered several other prominent figures for the chairman role. Sam Laidlaw, former CEO of Centrica, and Ken MacKenzie, who previously chaired mining heavyweight BHP, were among those approached. In the end, BP opted for Manifold’s seasoned corporate leadership, likely drawn by his track record of driving value in a complex global business.