BP chooses upstream division’s finance head as the new chief financial officer

The current finance chief of British Petroleum (BP), Brian Gilvary, will exit the role after eight years of service to the multinational oil and gas company in June. As per BP’s announcement on Tuesday, the company had opted for Murray Auchincloss to succeed Gilvary as the next Chief Financial officer.

Auchincloss is known to have a close alliance with Bernard Looney who is expected to assume the role of BP’s CEO in February. Currently, Auchincloss is the finance head of the upstream division of British Petroleum.

2010’s Oil Spill In The Gulf Of Mexico Cost $65 Billion To BP

BP had faced a massive challenge following the deadly oil spill in the Gulf of Mexico in 2010. The incident cost over $65 billion to British Petroleum not only in fines but also in indemnities and other relevant costs associated with the cleanup process. As the CFO, Gilvary has the reputation of effectively strategizing for BP’s financial recovery in the past ten years.

Owing to the sharply increasing profits for BP in the past few years, the London-based oil and gas company had finally removed the scrip dividend in 2019. In October, however, Gilvary hinted that BP may decide in favor of expanding the dividend payouts; an announcement that wasn’t well-received by the investors.

Gilvary’s departure from British Petroleum comes earlier than previously thought. Following Looney taking over as the new CEO replacing Bob Dudley, the executive will be confronted with a major responsibility of effectively navigating the oil and gas company through a rising inclination towards a low-carbon economy and environmentalism at large.

Stockbroker Panmure Gordon’s Comments On The BP’s Announcement

According to stockbroker Panmure Gordon:

“Gilvary’s departure may be associated with a more significant change in the company’s strategy including its financial strategy as the running of BP moves to a new top team.”

Gordon also suggested that problematic guidance over dividend may also have contributed to BP deciding in favor of Gilvary’s departure. The company itself, however, has rejected such a claim.

Other credentials to Gilvary’s name include his positions as a non-executive director at the Royal Navy Board, Air Liquide, and the Francis Crick Institute.

Currently trading at 480.70 GBX in the stock market, BP’s performance remained flat on average in January 2020. The stock remained downbeat in 2019 as well. Opening at around 510 GBX in January 2019 and ending at 480 GBX in December, BP marked an almost 4% decline in the stock market last year.