BP announced on Tuesday that Chief Executive Officer Bernard Looney has resigned from the company following a review of his conduct. Murray Auchincloss, the Chief Financial Officer, will step in as the interim CEO.
The review was prompted by allegations from an anonymous source in 2022 regarding Looney’s personal relationships with colleagues. During the investigation, Looney revealed a few past relationships with colleagues prior to becoming CEO, which BP determined did not violate the company’s code of conduct.
However, additional allegations of a similar nature were recently received, leading to a further investigation supported by external legal counsel. Looney has since admitted that he was not fully transparent in his previous disclosures and acknowledges his obligation to provide more complete information.
Looney has been with BP since 1991, dedicating his entire career to the company. He assumed the position of CEO in 2020.
Following this news, American depositary receipts of BP experienced a 1.3% decline on Tuesday, closing at $38.10. Despite this dip, the stock has seen a 9.1% increase in 2023. The broader energy sector has also witnessed positive momentum as Saudi Arabia extended its production cuts until the year’s end, resulting in higher oil prices.
BP reported a decrease in profit for the second quarter of this year, attributed to the drop in oil prices compared to the previous year. However, the British oil giant offset this news by raising its dividend by 10% and launching a $1.5 billion share buyback program.