Shares in oil giant BP (BP) were higher today on speculation that its new chairman could lead to it shifting its main stock market listing to the U.S.
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BP said Albert Manifold will join its board on September 1 as a non-executive director and as chair-elect before taking over the chairman role from Helge Lund on October 1.
Peers Performance
Lund has borne the brunt of investors’ anger over the company’s renewable energy push, which it has now largely ditched to refocus on oil and gas. Its share price has suffered in comparison with its peers over the last 5 years as it looked to up its renewable projects such as offshore wind and become net zero by 2050.
Lund announced in April that he would be stepping down from the role. He also suffered a shareholder rebellion at BP’s annual meeting earlier this year.
Manifold’s appointment is particularly interesting as he is the former boss of building-materials company CRH (CRH), and led the move in the company’s primary listing from London to New York in 2023.
Last year, BP chief executive Murray Auchincloss said that such a shift for BP was not on the agenda.
However, analysts believe this could change.
Speculation Stirred
“Manifold’s appointment as chair of BP will stir speculation the energy group might switch its main stock listing to the US. He knows the process inside out,” said Russ Mould, investment director at AJ Bell. “Switching listing to the US would be a risky move as there is no guarantee of getting a higher valuation. Doing so and then remaining on a big discount to rivals could cause further embarrassment to the board.”
Analysts said Manifiold could introduce other measures to boost the flagging share price including stripping out costs and ramping up oil and gas projects.
It needs to move fast. Its shares have dropped nearly 10% in the past 12 months, leading to speculation that it is now a takeover target. Names in the frame include rival Shell (SHEL) which was forced to deny it had any intention of making an offer earlier in the summer.
Is BP a Good Stock to Buy Now?
On TipRanks, BP has a Hold consensus based on 3 Buy, 6 Hold and 1 Sell ratings. Its highest price target is $35. BP stock’s consensus price target is $32.19, implying a 0.63% upside.
