BP (NYSE:BP) shares jumped on Wednesday after activist investor Elliott went public with a stake of more than 5% in the struggling British oil major, which has pivoted back to oil in a bid to restore investor confidence.
BP shares were last seen up 4.9% at 10:15 a.m. London time. The London-listed stock price is down around 5% year-to-date.
Hedge fund Elliott Management has built its holding in the British oil major to 5.006%, according to a regulatory filing disclosed late Tuesday. BP’s other large shareholders include BlackRock, Vanguard and Norway’s sovereign wealth fund.
Elliott was first reported to have assumed a position in the oil and gas company back in February, driving a share rally amid expectations that its involvement could pressure BP to shift gears from its green strategy and back toward its core oil and gas businesses.
Within weeks, BP, which has been lagging domestic peer Shell (NYSE:SHEL) and transatlantic rivals and posted a steep drop in fourth-quarter profit, announced plans to ramp up fossil fuel investments to $10 billion through 2027.
This marked a sharp strategic departure for the company, which five years ago became one of the first energy giants to announce plans to cut emissions to net zero “by 2050 or sooner.” As part of that push, the company pledged to slash emissions by up to 40% by 2030 and to ramp up investment in renewables projects.
BP shares grabbed 52 cents, or 1.8%, to open Wednesday at $29.40.
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