British Petroleum (BP) appears poised to refocus on hydrocarbons, a move that could bolster the company's profitability. However, without a clear declaration of this shift, investors may not reap the benefits, potentially stagnating the share price, as indicated by active investor BP Bluebell Capital Partners, as reported by Bloomberg.

According to Bluebell Capital Partners co-founders Giuseppe Bivona and Marco Taricco, BP ought to ramp up investments in oil and gas while scaling back spending on costly renewable energy ventures to enhance returns for shareholders, as outlined in Bluebell's October communication.

The hedge fund observed indications of BP moving in this direction during its fourth-quarter presentation, the first since Murray Auchincloss assumed leadership of the company. Auchincloss emphasized a "pragmatic" and "flexible" approach to the energy transition, suggesting that BP's oil production could surpass the anticipated 2-3% target for 2027.

While holding only a minor stake in BP (the exact size undisclosed), activist investor Bluebell, through its co-founder Bivona, has engaged with numerous major shareholders, many of whom echo concerns about the company's underwhelming shareholder returns and endorse the fund's proposal for strategic change.

Bluebell's history of shareholder activism includes advocating for a leadership change at Danone in 2021, attempting to compel Glencore to divest its coal business that same year (though unsuccessfully), and calling for Bayer to divide its business into three segments in 2023.

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