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A BP logo its petrol stand in Katwijk, Netherlands. (Photo: Yuriko Nakao)
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Going by near-term metrics, energy giant BP (LON: BP) has suffered a troubling stock price slump from already sagging levels relative to its peers - a position no company wants to be in.
For the year to April 17, BP’s share price came in 32.42% lower. Year-till-date it is currently down 12.41% and has risen by just 14.42% over the past five years. Contrast the performance with that of its U.K.-listed peer Shell (LON: SHEL) which is down 16.2% on an annualized basis and 3.59% year-till-date for the same period but up 76.64% over five years.
Not only does the long-term performance of Shell’s stock put BP in the shade, that of U.S. supermajor ExxonMobil’s (NYSE: XOM) stock, which logged an uptick of 144.45% over five years till date, makes it look absolutely sclerotic.
The five-year stock price appreciation levels of Chevron (58.45%) and TotalEnergies (61.09%) also pip BP’s by considerable margins. Unsurprisingly, markets and investors are loosing their patience with BP.
An Activist Investor And A Shareholders’ Revolt
A much-needed jolt arrived on February 13, as activist investor Elliott Investment Management took a near-5% stake in BP. Known to shake things up at its investment targets, Elliot’s move prompted as quick a response from BP as shareholders could have hoped for.
BP CEO Murray Auchincloss - who was already in the process of returning the company back to oil and gas basics - announced a reset promising to do “fewer things with higher returns” on February 26.
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