Business

BP CEO Looney resigns over personal relationships with colleagues

Published

8 months ago

September 13, 2023

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BP CEO Looney resigns over personal relationships with colleagues

BP, CEO Bernard Looney resigned on Tuesday with immediate effect after less than four years in the oil major’s top job for failing to fully disclose details of past personal relationships with colleagues, the company said.

Chief Financial Officer Murray Auchincloss will act as CEO on an interim basis, the company said.

Looney, 53, became CEO in February 2020 with a vow to reinvent the 114-year-old company, laying out ambitious plans for the British energy giant to achieve zero net emissions by 2050, and to invest billions in renewable and low-carbon power.

Looney’s surprise resignation came after allegations of personal relationships with company colleagues surfaced recently, prompting the company to launch an investigation.

That followed similar allegations the board investigated in May 2022. During that review, Looney disclosed “a small number of historical relationships with colleagues prior to becoming CEO.”

No breach of the company’s code of conduct was found at the time and the board was given assurances by Looney “regarding disclosure of past personal relationships, as well as his future behaviour.”

Looney informed BP’s board on Tuesday that he did not fully disclose details of all relationships, prompting his resignation.

BP shares in London ended up 1% before the FT reported Looney’s resignation. Its New York-listed shares fell 1.5% to the day’s lows after the news.

REINVENTING BP
Auchincloss 52, became CFO in July 2020 and has helped Looney steer the company through some of the most tumultuous years in modern history, from COVID-19 to a rapid exit from Russia following the invasion of Ukraine last year, an energy price shock, and a global cost of living crisis.

Auchincloss, a Canadian national, started his career as a financial analyst in Amoco, before BP acquired the company in 1998. Since then he has held several roles including CFO of BP’s North American Gas business.

Earlier this year, BP scaled back plans to cut hydrocarbon production by 2030, to 25% from 2019 levels from 40% previously – still the most radical reduction of oil and gas output this decade among major oil companies.

BP has struggled to convince investors it can realise competitive returns from its non-hydrocarbon businesses.

Over the last three years, BP’s shares have underperformed those of European rival Shell (SHEL.L) as well as U.S. peers Chevron (CVX.N) and Exxon Mobil (XOM.N).

After raking in a record profit of $28 billion for 2022, BP’s second-quarter profit slumped 70% from a year earlier to $2.6 billion but still allowing the oil major to boost its dividend by 10%.

It remained unclear if Looney’s departure would lead to an change in strategy.

“Depending on the new CEO, BP could theoretically roll back its transition plans further,” Morningstar analysts said in a note.

“But if the board likes the current direction, regardless of the lagging stock price, they will likely bring in someone who keeps BP on the same path.”

Looney’s 2022 pay packet more than doubled to around $12 million on the back of the bumper profits amid spiraling energy prices, while BP’s emissions were broadly unchanged from a year earlier.

BP said that “no decisions have yet been made in respect of any remuneration payments to be made” to Looney.

Looney replaced Bob Dudley, who had steered BP through the aftermath of the Deepwater Horizon spill in 2010.

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Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

Published

1 day ago

May 17, 2024

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Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

A notable Chinese company has expressed keen interest in expanding its investment in Pakistan, in yet another sign of investor confidence boost in the leadership of Prime Minister Shehbaz Sharif.

A delegation from Chinese firm MCC Tongsin Resources led by its Chairman Wang Jaichen called on PM Shehbaz here on Friday.

The premier invited the Chinese company to invest in Pakistan’s mining sector and manufacturing of export goods.

Shehbaz assured the delegation that his government would extend all-out facilitation to the company from minerals exploration and processing to the export of goods.

The PM instructed the relevant federal ministers and officers to continue consultation with the Chinese firm, taking the Balochistan chief minister, provincial departments and stakeholders on board.

The delegates reposed trust in PM Shehbaz’s leadership, and expressed keen interest in enhancing their investment in Pakistan’s mining and minerals sectors.

The delegation briefed Prime Minister Shehbaz about the construction of a mineral park in Pakistan and their future investment plans.

The premier welcomed the Chinese firm and highlighted the priority steps by his government to promote foreign investment in Pakistan.

He said that being a time-tested friend, China supported Pakistan in every difficult hour for which the Pakistani nation was grateful to the leadership and people of China.

Federal ministers Ahad Khan Cheema, Dr Musaddik Malik, Rana Tanveer Hussain, Jam Kamal Khan and relevant senior officers attended the meeting.

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Business

Govt jacks up power price by Rs1.47 per unit

Published

1 day ago

May 17, 2024

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Govt jacks up power price by Rs1.47 per unit

The government on Friday increased the electricity tariff by Rs1.47 per unit.

According to Nepra sources, the collection from consumers will take place in August, September, and October.

The electricity companies had requested the funds as part of the third quarter adjustment for 2023-2024, seeking Rs 31.34 billion under capacity charges.

Sources said that Rs5.57 billion were requested for operation and maintenance costs, and Rs12.38 billion were requested for the transmission and distribution impact under monthly fuel cost adjustment.

Previously, Nepra had completed the hearing on the electricity companies’ request under the quarterly adjustment.

Nepra approved the Power Division’s request, allowing an increase of Rs 1.45 per unit in electricity prices.

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Business

Hong Kong allows China’s digital yuan to be used in local shops

Published

1 day ago

May 17, 2024

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Hong Kong allows China's digital yuan to be used in local shops

Hong Kong will allow mainland China’s pilot digital currency to be used in shops in the city, the head of its de facto central bank said on Friday, marking a step forward for Beijing’s efforts to internationalise the yuan amid rising geopolitical tensions.

The programme, backed by Beijing, will allow mainland Chinese and Hong Kong residents to open digital yuan wallets via a mobile app developed by China’s central bank and will permit them to make payments in retail shops and some online stores in Hong Kong and in mainland China.

Transactions using e-CNY, predominantly for domestic retail payments in China, hit 1.8 trillion yuan ($249.27 billion) as of end of June 2023, with 120 million digital wallets opened, according to the latest disclosure from China’s central bank.

Using the wallet, users can make payments at over 10 million merchants in 17 provinces and cities in the mainland.

Each wallet used in the city will be subject to a balance limit of 10,000 yuan, with single transactions and daily payments capped at 2,000 yuan and 5,000 yuan, respectively, officials from the Hong Kong Monetary Authority said.

Peer-to-peer transfers will not be allowed at the moment, according to the HKMA.

“By expanding the e-CNY pilot in Hong Kong .. users may now top up their wallets anytime, anywhere without having to open a mainland bank account, thereby facilitating merchant payments in the mainland by Hong Kong residents,” HKMA Chief Eddie Yue said.

Currently, users of other digital yuan wallets such as those operated by Ant Group and Tencent can make payments in the city.

Industrial and Commercial Bank of China, Bank of China Ltd, China Construction Bank Corp and Bank of Communications Co have been selected as e-CNY wallet operators.

The yuan’s use in global finance remains low, though it has shown steady increases.

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