The company also reported an underlying replacement cost profit of $2.35 billion, which exceeded the analysts’ estimate of $1.76 billion.
BP said on Tuesday that it will carry out a thorough review of its entire portfolio to rein in costs under its upcoming Chair, Albert Manifold.
The company has been repeatedly pressured by investors, including the activist hedge fund Elliott Investment Management, to reduce costs and increase returns for shareholders.
BP CEO Murray Auchincloss said, “We will conduct a thorough review of our portfolio of businesses to ensure we are maximizing shareholder value moving forward,” after Manifold steps into his role on September 1. “BP can and will do better for its investors,” he said.
The company also reported an underlying replacement cost profit of $2.35 billion for the second quarter, which exceeded the analysts’ estimate of $1.76 billion, according to a Bloomberg News report.
Retail sentiment on Stocktwits about BP was in the ‘bullish’ territory at the time of writing, while retail chatter was ‘high.’
The appointment of Manifold, the former CEO of building material supplier CRH Group, follows a slew of executive changes, including the addition of Simon Henry, former CFO of Shell, and Dave Hager, former CEO of Devon Energy, to its board as it prioritizes fossil fuel production over a renewable push.
Earlier this year, the company revealed its intention to raise $20 billion through divestments by 2027, following a strategic review of its lubricants business, Castrol, and by partnering with Lightsource bp in its solar energy unit. It also intends to cut structural costs of $4 billion to $5 billion by the end of 2027, including $800 million already booked last year.
The company stated that it achieved cost reductions of $900 million in the first half and expects to receive approximately $3 billion from completed or announced divestments. On Monday, the company announced its biggest oil and gas discovery in over 25 years at the Santos basin, offshore Brazil.
However, it projected its third-quarter upstream production to be lower than the second quarter.
BP’s U.S.-listed shares have gained 9.4% this year, compared to 14% gains of London-listed rival Shell.
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