BP faces growing pressure from shareholders as it prepares to publish full-year results. Analysts expect weaker profits after oil prices fell for a third straight year, marking the sharpest decline since the Covid pandemic. City forecasts put BP’s annual profit at about $7.5bn, down from nearly $9bn in 2024, after crude prices dropped below $60 a barrel late last year.
Incoming chief executive Meg O’Neill will face demands to set out a clear new strategy. Investor groups want BP to explain how it will manage spending as long-term demand for fossil fuels declines. Shareholders led by the Australasian Centre for Corporate Responsibility and pension fund Nest have filed a resolution calling for tighter control of oil and gas investment. Activists at Follow This have also urged BP to outline how it will create value if fossil fuel demand falls.
BP has recently refocused on oil and gas, launching seven new projects last year. Critics argue this strategy risks future losses as electric vehicles and clean energy reduce demand. Follow This founder Mark van Baal said BP needs a plan for declining fossil fuel markets, noting the International Energy Agency expects oil demand to fall from around 2030. He said BP’s recent shifts between green energy and fossil fuels have left its strategy unclear and unsettled investors.
