Instant view: BP boss Looney resigns over personal relationships with colleagues

Sept 12 (Reuters) – British oil major BP’s (BP.L) CEO Bernard Looney has stepped down after less than four years in office for failing to fully disclose details of past personal relationships with colleagues.

Chief Financial Officer Murray Auchincloss will be the CEO on an interim basis, the company said.

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LINK: https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-ceo-resigns.html

COMMENTS

EDWARD MOYA, SENIOR MARKET ANALYST AT OANDA

“This was unexpected and could raise doubts to BP’s transition towards renewable energy. BP share prices might not get rocked that hard as CFO Auchincloss appears poised to take over. Whoever becomes the permanent CEO will have a greater impact on what happens to BP’s stock.”

ALLEN GOOD, DIRECTOR AT MORNINGSTAR HOLLAND BV

“While BP rolled back some of its energy transition strategy earlier this year, such as keeping oil production higher for longer, it largely kept with its plans. This stands in contrast to peer Shell, who pivoted more with a new CEO. So, depending on the new CEO, BP could theoretically roll back its transition plans further. But if the board likes the current direction, regardless of the lagging stock price, they will likely bring in someone who keeps BP on the same path.”

MICHAEL SCHULMAN, CHIEF INVESTMENT OFFICER, RUNNING POINT CAPITAL ADVISORS

“I believe this will be a near-term negative for BP’s stock, but realistically much of the long-term direction and improvements driven by Bernard Looney were also co-piloted by CFO Murray Auchincloss, so the company should not be completely rudderless with Looney’s departure. Long-term it may even be a positive for BP if Looney’s personal issues were distracting corporate culture.”

“Over the short to mid-term, this should not change the outlook for expenses and revenue growth which are largely driven by global macro factors, well-thought long-term capital expenditure plans, and as announced previously, the throttling back of its renewable energy-transition pace along with higher oil and gas investments over the next half-dozen years.”

GIACOMO ROMEO, EQUITY ANALYST, JEFFERIES

“The resignation of BP’s CEO due to reasons unrelated to the company’s strategy or performance is likely going to be taken as a negative.”

“Nominating CFO Murray Auchincloss as interim CEO will guarantee a certain level of continuity of BP’s strategy. We also view him as a likely internal CEO replacement candidate (together with Chairman Helge Lund).

An external hire, while not traditionally an option chosen by BP, can’t be ruled out. The increased level of uncertainty is also likely to reignite the M&A deal specs seen at the end of last year.”

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