BP CEO Meg O'Neill Prioritizes Debt Reduction Over Buybacks
BP Chief Executive Officer Meg O'Neill pledged to prioritize debt reduction and asset divestment after admitting the company failed to manage shareholder capital responsibly.
Chief Executive Officer Meg O'Neill admitted on Monday at the Energy Intelligence Forum in London that BP has not been careful stewards of shareholder capital. O'Neill stated that the company failed to manage investor money responsibly, wrote off too much value, and has remained the most levered company in its sector for more than a decade.
O'Neill indicated that debt reduction is now the primary priority, which rules out expenditure increases. She declined to provide a timeline for the resumption of share buybacks, a program the company suspended earlier this year.
Since becoming the first external hire for the role in April, O'Neill has worked to flatten the organizational structure and offload underperforming assets. These divestments include the Gelsenkirchen refinery and planned sales of Archaea Energy and the company's North Sea business. This strategic shift follows pressure from activist investor Elliott Investment Management to prioritize oil and gas production over renewables.
