LONDON — BP PLC heads into a new week with its stock under pressure after a boardroom crisis erupted last Tuesday, when chairman Albert Manifold was removed over governance concerns. The move sparked reports of deeper internal clashes and left investors questioning the stability of the energy giant's turnaround strategy.
BP shares closed Friday at 521.80 pence, up 1.3% on the day but down 5.3% from the prior Friday's close of 551.20p. The broader FTSE 100 fell about 0.5% over the same period, making BP a clear laggard in a week shortened by the UK market holiday.
Manifold's removal was announced Tuesday, with BP citing concerns over governance standards, oversight, and conduct. Amanda Blanc, BP's senior independent director, said the board was "surprised and disappointed" and had "taken decisive action." Manifold denied any misconduct and defended his push for change, saying in a Thursday statement that he may have "pushed hard" for reform and described CEO Meg O'Neill and finance chief Kate Thomson as "brimming with integrity."
The turmoil escalated late Friday with a Wall Street Journal report that Manifold had clashed with director Simon Henry earlier this year over handling of sensitive talks related to a potential deal. Reuters said it could not immediately verify the report and that BP, Manifold, Henry, and former CEO Murray Auchincloss did not provide comment.
Analysts warned the crisis could undermine investor confidence. Henry Tarr at Berenberg called the ouster the latest in a series of leadership changes. Citi's Alastair Syme said Manifold was part of BP's "equity story" — the shorthand for why investors buy the stock. RBC Capital Markets' Biraj Borkhataria noted many investors viewed him as BP's "agent of change."
The broader energy sector offered no relief. Oil prices slipped nearly 2% on Friday amid hopes of a U.S.-Iran ceasefire extension, while UK energy stocks posted their biggest monthly drop in a year. Shell and BP were mixed on the day. Meanwhile, TotalEnergies won shareholder approval to raise age limits for its chair and CEO roles, a continuity signal BP currently lacks.
Activist investor Elliott Management, which disclosed a more than 5% stake in BP last year, remains in the background. Reuters has reported that Elliott wants BP to cut costs, shift spending from renewables to oil and gas, and simplify the group — moves Manifold had sought to accelerate.
For the week ahead, investors will watch for any further BP statements, signs of a legal fight from Manifold, and whether the stock can recover if oil prices stabilize. Morningstar's Allen Good kept his fair value estimate unchanged but said the episode raises more questions about BP's board oversight and ability to execute.
The bottom line: BP's stock has moved from an oil-price trade to something less tidy. The market is asking whether this is a one-week governance flare-up or another sign that BP's turnaround still has too many people problems at the top.
