BP Plc. shares experienced a notable rise, climbing approximately 7% on the London Stock Exchange and showing a similar gain in pre-market trading on the NYSE. This uptick followed reports that Elliott Management, an activist hedge fund, has acquired a stake in the British energy giant.
While the exact size of Elliott's investment remains undisclosed, the Financial Times suggested that Elliott's involvement could prompt speculation regarding a possible strategic overhaul and changes to BP's board.
Earlier in January, news emerged that BP plans to eliminate roughly 4,700 jobs, equating to over 5% of its workforce, as part of an extensive cost-cutting strategy.
BP's CEO, Murray Auchincloss, previously mentioned an aim to achieve at least $2 billion in cash savings by the conclusion of 2026.
In its latest trading update, BP indicated that its fourth-quarter upstream production is expected to be lower compared to the third quarter. This reduction is anticipated across oil production and operations, as well as in gas and low-carbon energy sectors. Moreover, the earnings report will reflect non-cash, post-tax impairment charges estimated between $1 billion and $2 billion across various segments.
The company is set to announce its annual earnings on February 11.
Currently, BP shares are trading at 463.59 pence in London, marking a 7% increase. Meanwhile, pre-market activity on the NYSE shows shares trading at $34.39, up by 6.57%.
