BP is to drop its ambitious renewable energy targets and will instead return its focus to fossil fuels, according to a report from Reuters.
The turnaround is coming amid investor concerns over earnings, with BP’s shares underperforming its rivals in recent years, the report said.
The company had planned to have 50GW of renewable generating capacity by 2030 and was building a diversified renewable portfolio.
BP’s chief executive Murray Auchincloss is expected to tell investors of the strategy shift at a capital markets event in London on Wednesday, according to Reuters. BP has declined to comment.
The company had already dropped targets to reduce its oil and gas output by 2030.
According to its earnings reports, BP has 8.2GW of renewable generation capacity, and for 2019, its net wind generation capacity reached 926MW, although there was no figure for total renewable capacity in that year.
Sources told Reuters that BP will drop a target to reach EBITDA of $49bn this year and will instead set an annual percentage growth target.
The unnamed sources are reported as saying that BP will also reveal plans to divest assets and cut other low-carbon investments to slash debt and boost returns.
BP has been under mounting pressure to cut costs after activist investor Elliott Investment Management acquired a near 5% stake in the company, Reuters said.
A separate source told the news organisation that Elliott wanted BP to reduce its green energy spending and sell renewable assets such as wind and solar sites.