BP names outsider Albert Manifold as chairman as investors push for turnaround

By Yamini Kalia and Yadarisa Shabong

(Reuters) -BP named outsider Albert Manifold, the former boss of building materials producer CRH, as its new chairman on Monday, as it grapples with a major strategy reversal in an attempt to turn around a weak share performance.

Manifold, who has not previously held a senior position in the energy sector, will succeed Helge Lund from October as BP slashes planned renewables spending under persistent takeover and break-up speculation. 

During his 11-year tenure at CRH, the Irish company's shares soared nearly fivefold as it reshaped its portfolio and moved its primary listing to New York in 2023.  

"Manifold's experience should serve him and BP well as they are embarking on a similar journey," said Allen Good, an analyst with Morningstar.

"The question with BP is what the destination is and whether investors are willing to wait," Good said, adding that it may be up to Manifold to push current management for further cost cuts.

BP's senior independent director, Amanda Blanc, who led the succession search, said Manifold's track record made him "the ideal candidate" to oversee BP's next chapter.

Norwegian national Lund, 62, who has been BP's chair since 2019, fell out of favour with investors after he backed ex-CEO Bernard Looney's ill-fated foray into renewables.

BP's shares rose 0.6% to 402 pence in early trade on Monday. They have fallen nearly 30% since 2019, when Lund took on the chairman role, markedly underperforming rivals.

Lund had been expected to leave BP in 2026 after severe criticism from activist investor Elliott and climate-focused shareholders led to sharply reduced support for his re-election in April.

"While sustained delivery remains key, we expect the appointment and a faster succession to be quietly welcomed," JPMorgan analysts said in a note, noting that although Manifold lacked oil and gas experience, he had been well respected at CRH.

Elliott has built an over 5% stake in BP with calls for cost-cuts, divestments and a pivot back to the company's oil and gas roots.

Murray Auchincloss, who was appointed BP's CEO in January 2024, announced plans to overhaul the energy giant earlier this year.

Sam Laidlaw, the former chief executive of British Gas owner Centrica and Ken MacKenzie, retired chair of mining group BHP, were also reportedly approached to succeed Lund.

(Reporting by Yamini Kalia and Yadarisa Shabong in Bengaluru; Editing by Janane Venkatraman, Kirsten Donovan)