BP (LON:BP) is under pressure to show how it will boost production and cashflow at a strategy update tomorrow, The Times has reported. The news comes after the oil major recently disclosed that it had returned to headline profit last year.
BP’s share price has jumped in London this morning, having added 1.13 percent to 452.15p as of 09:30 GMT, and outperforming the broader UK market, with the benchmark FTSE 100 index currently 0.20 percent better off at 7,258.42 points. The group’s shares have added just under 30 percent over the past year, but are down by some 11 percent in the year-to-date.
The Times reported today that BP’s chief executive Bob Dudley was expected to face questions about growth prospects when he addresses investors tomorrow in the group’s first formal strategy update for three years.
“Investors want a clear performance and financial target framework,” Jon Rigby of UBS, told the newspaper. “Historically, BP delivers this [...] The medium-term framework needs to emphasise something more akin to a $50-a-barrel neutrality figure at the bottom end of BP’s previous target range.”
The news comes after BP recently unveiled that its headline reported result for the full year was a profit of $115 million, compared with the headline loss of $6.5 billion in 2015, with the 2016 result including a total of $4 billion non-operating charges relating to the 2010 Gulf of Mexico oil spill.
The update meanwhile will come as the company reportedly faces a renewed showdown with shareholders over its chief executive’s multi-million pound pay package. The potential pay row could come 12 months after the oil major suffered an investor revolt, with the majority of voters rejecting chief executive Bob Dudley’s near £14-million pay deal.