BP PLC's (LSE:BP.) latest boardroom shake-up adds another layer of uncertainty to the oil major’s investment case, analysts at Citi said in a note, though the bank believes valuation may still provide a floor for investors willing to look through the turbulence.
The departure of chair Albert Manifold comes at a sensitive point for BP, Citi added, arguing that the precise reasons for his dismissal are less important than the role he had come to play in the company’s equity story.
“The issue is that, unusually for a large IOC, he was part of the equity story,” Citi said, noting that many investors had begun re-engaging with BP after several years of turmoil because of Manifold’s role in driving change.
The central question now, according to Citi, is whether Manifold achieved enough during his brief eight-month tenure to leave BP’s strategic direction largely set.