BP PLC has emerged at the centre of activist pressure from several directions in recent days, leaving speculation over the likes of disposals or spin-offs.
Citing reports that hedge fund Elliot Management had become a top three shareholder, RBC analysts flagged growing uncertainty around BP’s next move to appease activists.
Three potential options appeared to have arisen, RBC said, including the sell down of BP’s marketing and convenience division, divestment of Castrol or a spin-off of its shale unit.
“We think monetizing part of BP’s marketing segment through disposals would make sense, however we would note that this segment generates [...] stable earnings,” it added.
“Divesting Castrol makes less sense to us at this juncture given earnings have declined substantially over recent years, and so headline accretion may be a function of depressed near term earnings.
“A BPX listing in the US could help replicate the success of AkerBP,” RBC also noted, after the unit was spun off on the Oslo Stock Exchange in 2016.
Elliot’s demands appeared unclear though, RBC warned, with broad-based pressure said to be around the likes of accelerated cost cutting and reduced spending on green projects.
BP has also come under pressure from climate activists, with a group collectively holding 2.5% in the oil giant this week calling for a vote on any plans to cut climate targets ahead of its investor day next Wednesday.