Latest news with #AlbertManifold
Daily Mail
3 days ago
- Business
- Daily Mail
BP's scramble to rally big investors behind new chief
Amanda Blanc embarked on an intense charm offensive among top BP shareholders last week to convince them that the choice of low-profile building materials executive Albert Manifold as chairman made sense. There had been an expectation in the City that a thorough recruitment process – conducted by the no-nonsense Aviva chief executive – who is BP's senior independent director and who led the search – might yield a more prominent chairman with wider knowledge of the energy industry. BP was stung by early criticism of Manifold by City brokers Panmure Gordon, who accused the oil giant's board of a 'panic appointment'. The energy giant also found it necessary to repudiate derogatory comments made by an unnamed 'bitter and twisted' losing candidate for the post. Working from Aviva's Canadian headquarters in the last few days, Blanc spoke to all of BP's leading UK and American investors and has seemingly managed to turn the tide of opinion. Most now are reportedly positive about the BP board's final choice. But there was some disappointment at the oil giant's headquarters about the lack of a rise in the share price following the announcement, as well as at some of the negative briefing in the Square Mile. Blanc is said to have convinced leading investors that the naysayers who challenged the choice of Manifold 'lacked credibility'. In selling the selection to the City, BP and its advisers have pointed to Manifold's stellar, under-the-radar performance at CRH, where he drove the value of the group's shares up 342 per cent during a ten-year tenure. The share price performance of CRH, which moved its listing to New York two years ago, is described by BP insiders as 'magnificent'. Blanc is also understood to have pointed to Manifold's considerable experience in making deals, and his knowledge of a building materials industry that has come under close scrutiny from regulators. Despite claims about the new chairman's modest Irish-based lifestyle, it has been noted that he became one of the best rewarded executives in the British Isles, amassing some £54 million of stock options between 2020 and 2024. But while Manifold has a reputation for successfully managing bids and deals, chairing the oil giant is regarded very differently. Being BP chairman requires great diplomatic skills given that its operations include sensitive territories such as Iraq. He will also have to contend with the battle being waged by chief executive Murray Auchincloss to refocus the company on oil production after a disastrous effort under his predecessor Bernard Looney to transmogrify the company into a green energy pioneer. Nevertheless, BP insists that the job of chairman is to lead the board and hold the management to account. 'It is not to be the deep technical expert,' one person involved in the search noted. Being an industry expert is also no guarantee of success. Manifold's predecessor, Helge Lund, a Norwegian veteran of the oil sector, quit due to mounting investor pressure and criticism of his performance in the role. An adviser to BP's rival Shell expressed surprise that the selection panel overlooked its newest non-executive director, Simon Henry, who was appointed to the board earlier this month. Henry is a former finance director of Shell and has been influential on the board of mining giant Rio Tinto. BP's response is to argue that in bringing both Henry and Manifold aboard, the group 'had the best of both worlds'. Manifold's first task will be to keep notorious activist investor Elliott Investment Management onside. It welcomed his appointment and wanted to see him 'urgently' address the company's 'shortcomings'. But other leading American holders of BP shares have recognised that turning the tanker around will take time, and believe that the newish team deserve at least eight quarters, or two years, of grace to show that things are on the mend. The big question is whether Manifold will be able to withstand the pressure on BP to cut back spending on new oil and gas facilities while providing better returns to shareholders. He has experience in this area, having previously faced down activists at CRH. There has been some concern about the length of the process to appoint the chairman. Blanc insisted on a thorough process using head-hunters, a long-list and short-list, and bringing the board along with her. But the drawn-out procedure allowed speculation to build of a takeover approach by Shell. Fortunately for BP's top team, Shell denied any early-stage talks and took itself out of the picture for at least six months. Outside observers were not the only ones surprised by the choice of Manifold, with many BP insiders having no knowledge of his background. In a bid to bolster his credentials, he has in the past few days made a point of touring the oil giant's offices in St James's Square in central London and holding a series of one-to-one meetings with executives and colleagues. But only time will tell if the former building materials boss can cement his legacy at BP.
Irish Times
4 days ago
- Business
- Irish Times
Can former building giant CRH boss Albert Manifold bring clarity to struggling BP?
BP's appointment of Albert Manifold , former CEO of Irish building materials giant CRH , as its new chairman sparked a muted response from investors. BP shares barely budged, reflecting scepticism over Manifold's lack of oil and gas experience. Reports suggest Manifold was not BP's first choice. At 62, he steps into a role far removed from cement and construction, with an energy giant struggling with debt, strategic confusion, and activist investor pressure. It is, said Panmure Liberum, a 'panic' and 'proper left-field appointment'. The counter argument is that Manifold's credentials speak volumes. CRH shares more than tripled under his 11-year leadership, turning a modest regional player into a US-listed $63 billion (€53.6 billion) global powerhouse through disciplined capital allocation, aggressive portfolio reshaping, and operational efficiency. READ MORE BP shareholders will hope his reputation as a shrewd operator who cuts bloat and boosts cash flow is what the company needs after years of costly missteps in renewables and faltering upstream performance. Critics worry Manifold's skills as a CEO may not translate to chairmanship. However, BP's board clearly values his pragmatic approach and investor-focused track record. On that front, there is already speculation Manifold might consider switching BP's listing to the US, as he did with CRH, aiming for a higher valuation. With BP pivoting back to oil and gas, amid ongoing asset sales and cost-cutting drives, Manifold faces a daunting challenge: to bring strategic clarity and restore shareholder faith. It may be an unconventional hire, but BP shareholders will hope a fresh perspective is just what the doctor ordered.
Irish Times
4 days ago
- Business
- Irish Times
Albert Manifold will not indulge sacred cows or ‘box ticking' as incoming BP chairman
British businessman John Browne, who turned BP into an oil supermajor through a series of acquisitions over a dozen years as chief executive, revealed in his memoir in 2010 how close he came to the deal he really coveted. The Baron Browne of Madingley met his then opposite number at Shell, Jeroen van der Veer, at Lake Como in Italy in 2004, three years before he resigned, to discuss the possibility of a merger, he wrote. That was before the board of BP, then led by Irish man Peter Sutherland, blocked the plan. Twenty-one years later, reports emerged in recent months that Shell was considering making an offer for BP Shell, whose £157 billion (€180 billion) market value is not far off three times that of its historic arch-rival, would deny in late June that discussions were taking place. But the fact that it was even given credence by the market – BP's shares rose as much as 12 per cent in eight hours of heightened speculation – underscores how much the one-time top dog on the FTSE 100's fortunes had ebbed. [ BP appoints Irishman Albert Manifold as new chairman Opens in new window ] Will the appointment on Monday of another Dubliner, former CRH boss Albert Manifold , as incoming chairman help reboot the engine? The muted share price reaction – with the stock dipping a little over 1 per cent this week – suggests he has his work cut out. Manifold, who is due to take charge of the board in October, is joining the group after a tumultuous few years. Chief executive Murray Auchincloss moved in February in an investor day to scrap plans by his predecessor, Kerry native Bernard Looney, to put BP on the greenest path of any oil big. Looney had aimed to increase renewable energy generation 20-fold over this decade. Instead, BP now plans to hike its investments in oil and gas by about 20 per cent to $10 billion a year, while decreasing previously planned funding for renewables by $5 billion a year to $2 billion. Auchincloss, who took charge in 2023 after Looney was fired for misleading the board over colleague relationships, said the energy giant had gone 'too far, too fast' in the transition away from fossil fuels, and that its faith in green energy was 'misplaced'. How will the updated National Development Plan shape Ireland in years to come? Listen | 35:59 The reset was inevitable, following profit declines at BP in 2023 and 2024 and a sustained period of share price underperformance compared to peers. The leaking of news in early February that feared activist hedge fund Elliott Management had built up an almost 5 per cent position in BP, and that it would push for the business to abandon its commitment to green energy, added to pressure before the investor day. [ Manifold bows out of CRH after almost 400% share price surge Opens in new window ] BP is not alone. The likes of Shell, France's TotalEnergies, Eni of Italy, Oslo-based Equinor, and ExxonMobil in the US, have all scaled back their green ambitions in recent times to focus more on higher-margin fossil fuels, as inflation and a spike in interest rates hit the economics of renewable projects. The International Energy Agency said as recently as two years ago that there was no room for oil, gas and coal activities if the Paris agreement of limiting global warming to 1.5 degrees Celsius was to be successful. Yet its executive director, Fatih Birol, has since taken a different stance. As political and business leaders grapple with the energy trilemma – tending to often contradictory aims of energy security, affordability, and decarbonisation – Birol said in March that there is a need for investment in fossil fuels 'especially to address the decline in existing fields'. In the near term, however, depressed oil prices pose a challenge for oil giants as investors put a priority on dividends and share buy-backs. Brent crude prices have fallen 10 per cent so far this year to about $68.50 a barrel, amid higher output from the Organisation of the Petroleum Exporting Countries and its partners and worries that the Trump administration's trade policies will dampen global demand. BP agreed last week to sell its US onshore wind business to local electricity transmission systems operator LS Power for an undisclosed sum, as part of a $20 billion disposals strategy over the coming years to simplify the group and lower debt. It's not confined to just green assets. The 120-year-old group also signed a deal earlier in the month to sell its 300 Dutch petrol stations. And it is marketing its Castrol motor lubricants unit – though bids are said to have come in at $6 billion-$8 billion, well off initial hopes that it would achieve $10 billion. Followers of Manifold will expect him to push for a fresh review of the group's asset base. He drove a doubling of CRH's earnings margins during his 11 years in charge – selling $14 billion of underperforming or unwanted assets in the process, while spending $25 billion acquiring others. It turned CRH from a seller of cement and other base materials into full-scale construction services, where it has much greater pricing control. CRH also spent $8.5 billion buying back its shares over the past seven years. Its share price has jumped by almost 80 per cent since Manifold moved its main listing to New York in September 2023 – ditching its Irish quotation in the process. Could he also seek to replicate this with BP? Wall Street investors, after all, are less concerned these days about ESG (environment, social and governance) factors than those on this side of the Atlantic. There will be no sacred cows with Manifold at the helm of the board. Manifold's record in his final years at CRH won an unlikely fan in Europe's largest activist fund manager, Cevian, which originally turned up on CRH's shareholder register in 2019 with a list of gripes against the company. 'Albert was an excellent and highly shareholder-value-focused CEO. We shared a common goal in making CRH better and more valuable, and we enjoyed working with him,' said Cevian founding partner Christer Gardell in a statement to The Irish Times. 'He isn't a conventional UK plc box-checking guy. But if you want a chair to steer value creation, he seems a great appointment.'
Yahoo
22-07-2025
- Business
- Yahoo
BP Names CRH's Albert Manifold as New Chairman Amid Turnaround Push
BP (BP, Financials) said Monday it has appointed Albert Manifold as its next chairman, tapping the former CRH (CRH, Financials) chief to help navigate a strategic shift and rebuild shareholder trust following criticism of its renewables pivot. Manifold, who led CRH for 11 years and oversaw a fivefold increase in its share price, will replace Helge Lund in October. Though new to the energy sector, Manifold is seen as a capable turnaround executive with experience in portfolio restructuring and cost discipline. The move comes after BP backed away from aggressive renewables investments and faced pressure from activist investor Elliott Investment Management, which has taken a more than 5% stake and pushed for renewed focus on oil and gas, asset sales, and cost cuts. Senior Independent Director Amanda Blanc, who oversaw the chairman search, said Manifold was chosen for his strong track record in corporate transformation. JPMorgan analysts said the appointment is likely to be quietly welcomed, despite Manifold's lack of oil and gas credentials. BP shares edged up 0.6% Monday to 402 pence. The stock has fallen nearly 30% since 2019, when Lund took over as chairman. He had been expected to step down in 2026, but mounting investor dissatisfaction accelerated the timeline after his support dropped sharply in April's shareholder vote. The company is in the midst of a broader overhaul under CEO Murray Auchincloss, who took the helm in January 2024. Other candidates reportedly considered for the chairman role included Sam Laidlaw, former CEO of Centrica, and Ken MacKenzie, former chair of BHP (BHP, Financials). This article first appeared on GuruFocus.
Irish Times
22-07-2025
- Business
- Irish Times
Albert Manifold, Irish cement veteran hired to chair BP for pivot back to oil and gas
BP has chosen a new chair who built his career not in oil, gas or the City of London, but in gravel, asphalt and cement. The appointment of Albert Manifold , a 26-year veteran of Dublin building materials company CRH , caught many investors and industry insiders by surprise when it was announced on Monday morning. 'It is an underwhelming appointment,' said one executive headhunter. The market reaction was also muted, with no meaningful move in BP's share price despite widespread investor frustration with outgoing chair Helge Lund. But people familiar with Manifold's record argue that behind his low-key persona is the drive, discipline and focus on shareholder returns that BP badly needs. One person who has competed against Manifold on deals described him as a 'shrewd operator' and a 'man on a mission'. READ MORE One of BP's most important investors, activist hedge fund Elliott Management, broadly welcomed the appointment, saying it noted Manifold's 'track record of delivering shareholder value' and that it looked forward to working with him to 'urgently address BP's shortcomings'. [ BP appoints Irishman Albert Manifold as new chairman Opens in new window ] After a failed foray into renewable electricity, the energy major in February pivoted back to focus on oil and gas but has not been rewarded by investors. BP's share price has fallen more than 8 per cent since it unveiled its new strategy, after oil prices slid in the second quarter. In more than a decade in charge of CRH, now the largest building materials supplier in the US, the 62-year-old Manifold overhauled its assets, pushed through transformational acquisitions and moved its primary listing from London to New York. Total shareholder returns during his tenure were 342 per cent, equivalent to an annualised 16.5 per cent, according to Josh Stone, an analyst at UBS. In 2023, Manifold was the third-highest-paid chief executive of a FTSE 100 company, one place above BP's former chief executive Bernard Looney. CRH stated this year that the value of his unvested stock options from 2020 to 2024 was more than $70 million. On Monday, as well as being appointed BP chair from October, he became an adviser to CD&R, the private investment firm where current BP chair Lund is also an adviser. Manifold's experience in boosting CRH's market valuation, especially in the US, was a huge draw for BP, whose share price peaked almost 20 years ago and has been trying to increase the number of American investors on its shareholder register. 'What we really need is somebody that leads the board, leads a strategy and basically somebody that can help in terms of the performance management of the business,' said one person involved in the hunt for the new chair. Manifold's low profile and lack of oil and gas experience was not an issue, the person added. 'A chair is not meant to be the high-profile person. The CEO is the leader of the business. If you look at the way he has delivered at CRH, he has done it in a quiet way. He has not had a public persona as such, but he has delivered incredibly strong performance, and the CRH shareholders were not disappointed.' Manifold, whose parents ran a hardware store in the Dublin suburb of Kimmage, lives in the nearby coastal town of Wicklow and was described by one of his friends as down-to-earth and highly driven. 'There were no corporate jets at CRH, no drivers. Once he needed to see his chair on a Friday night, it was pissing with rain and he just got in his car and drove the 200 miles to get there,' the person said, adding that Manifold had played rugby as a prop forward, as did Peter Sutherland, the last Irish chair of BP. Manifold won the top job at CRH in 2014, when the company was still feeling the effects of the slump in US residential construction following the financial crisis. His first act was a sweeping review of the company's business, according to one senior investment banker close to Manifold. He then pushed through a transformational acquisition, beating private equity firms Blackstone and Cinven to a €6.5 billion deal for a package of assets that EU competition regulators forced cement groups Holcim and Lafarge to sell off when they merged. 'He just knew everything that was going on with his rival bidders,' said one person involved in the process. 'His level of intelligence of the industry and within his PE rivals was excellent. He was always one step ahead of his rivals in the process. The level of connectivity he had gave him an edge.' That deal 'gave them good scale', the banker said, adding that CRH 'only had to do a €1.6 billion equity placement, which was very well supported. The shares performed well and it's gone on from there.' Manifold also brings green credentials. He was president of the industry organisation effort to try to decarbonise cement production and CRH has a target to cut its total carbon emissions by 30 per cent by 2030 from 2021 levels. In an interview with CNBC last year, he described how he had moved CRH up the value chain. 'We don't just provide rocks and cement,' he said. 'We take the rocks and make asphalt, we pave the roads with that asphalt. We maintain the roads and provide the off-ramps, on-ramps and bridge components. We don't just make one sell, we make six sells.' Although he does not have oil and gas experience, Manifold has not had to look far for advice on the BP job. Lamar McKay, the former head of BP's business in the US, is CRH's senior independent director. Bob Dudley, the former BP chief executive, sits alongside Manifold on the board of chemicals company LyondellBasell. Egon Zehnder, the headhunter that oversaw the search for BP's chair, also handled the chief executive succession process at CRH. BP remains under pressure after a turbulent few years and is struggling under heavy debts and from a lack of investor confidence in its strategy. Bloomberg this month described Manifold's new role in an opinion piece headline as 'a thankless job no one wants'. But his supporters back him to turn around the UK energy major. 'He'll want the company to do things that generate cash and give the sort of returns that he wants,' the banker said. 'That's what shareholders will reward.' – Copyright The Financial Times Limited 2025
