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BP sees quarterly profit plunge 70% under pressure from Elliott Management

BP announces a sharp drop in quarterly profit, as Elliott Management intensifies its demands to improve the British oil group's financial performance.

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British energy group BP saw its group share net profit drop 70% year-on-year in the first quarter to 687 million dollars, according to a statement released on Tuesday. This decline comes amid heightened market volatility, fuelled by the trade war launched by Donald Trump.

Decline in refining margins and gas weakness

BP explained that its results were impacted by lower refining margins and reduced performance in its gas sales activities. Its revenue also fell by 4%, reaching nearly 48 billion dollars. Chief Executive Officer Murray Auchincloss stated that the company continued to closely monitor market developments, without directly referencing the American political context.

Auchincloss pointed out that BP had made “significant progress” within the framework of its new strategy, launched after abandoning ambitious climate targets in February. “Our plans to strengthen the balance sheet, reduce costs and improve cash flow and returns will enhance long-term shareholder value and strengthen BP’s resilience,” he said.

Elliott Management’s intervention in governance

BP’s weakened financial situation comes as activist investment fund Elliott Management recently acquired more than 5% of the company’s capital, according to a communication from BP to the London Stock Exchange. According to several British media outlets, Elliott Management is pressuring BP to reduce headcount at its headquarters and simplify its operational structure to improve profitability.

This pressure follows a difficult year 2024, during which BP recorded a 97% drop in net profit and announced the elimination of 4,700 jobs, representing more than 5% of its global workforce.

Underlying profit evolution and market expectations

BP’s underlying profit, which excludes exceptional items and is a key indicator for investors, also halved to reach 1.4 billion dollars in the first quarter. This performance comes in a context of fluctuating demand in global energy markets.

BP has not specified which specific measures would be taken to respond to Elliott Management’s expectations. However, deeper organisational restructuring could be considered to support profitability and meet the growing demands of institutional shareholders.

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