BP PLC (LSE:BP.) investors are starting to accept the oil giant's new, scaled-back transition plan, according to Citi Group analysts.
Investors had been “distrustful” and felt the vague strategy would not play into BP’s strengths, according to Citi analysts, though the evolving plan now provides “much greater economic certainty”.
BP faced scrutiny after scaling back green commitments in February, with National Employment Savings Trust, Brunel Pension Partnership and the Universities Superannuation Scheme among investors previously threatening to revolt over the move.
FTSE 100-listed BP saw off challengers to its watered-down climate ambitions in April’s annual general meeting though, with 83% of investors backing the oil firm.
According to Citi, BP’s plans to scale up convenience retail offerings, alongside bioenergy and various hydrogen projects should “show through meaningfully” as early as 2026.
“Nearer-term catalysts are likely as defined projects take shape,” the bank noted, adding its forecasts sat 16% above consensus estimates.