BP picks first outsider CEO Meg O'Neill after abrupt Auchincloss exit

Dec 18 (Reuters) - BP has named ⁠Meg O'Neill, chief ⁠executive ‍of Australia's Woodside Energy, as its next CEO, signalling a renewed push to boost returns and double down on oil and gas after retreating ‍from an ambitious renewables strategy.

O'Neill, who will take over in April following ​the abrupt exit of Murray Auchincloss, becomes BP's first external CEO in its more than century-long history ​and the first woman to lead any of the world's top five oil majors.

Here's what analysts are saying about the latest development:

SAUL KAVONIC, ANALYST, MST MARQUEE

"Meg has built a very strong reputation ​in the oil and gas industry in the space of a few years, and is even more highly regarded overseas than in Australian markets."

BRYNN O’BRIEN, EXECUTIVE DIRECTOR, ​AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY

"At Woodside, O’Neill’s departure is an opportunity for a much-needed strategy refresh."

“Investors will be hoping ‌that O’Neill’s departure is a circuit breaker on Woodside’s habit of pursuing high-capex, marginal fossil fuel projects, and is an opportunity to ​instead start focusing on better capital returns."

PIPER SANDLER ⁠ANALYSTS

"Although the announcement was surprising in terms of timing and immediacy, we expect that the change will ultimately be positive for the stock.

"While ‌investors have generally been positive on the direction of travel under Auchincloss, including material changes to capital allocation and strategic direction, it has also been clear that there is market appetite ‌for a more aggressive approach in both scope and pace."

"The decision highlights a level of speed and ‌focus under new Chairman of the Board, Albert Manifold, that was lacking previously, and is likely to be welcomed by investors."

PAUL CHENG, ANALYST, SCOTIABANK GLOBAL EQUITY RESEARCH

"We believe the market will view ‍the step-down of Auchincloss with positive lens. In our opinion, the appointment of a new outsider CEO signals the Board's impatience with ⁠the pace and extent of previously announced restructuring efforts."

"In the past, we have found successful cases where the new outsider CEO with no legacy baggage had successfully served as a disrupted change agent that led to a significantly higher performance level within a couple of years."

(Reporting by Arunima Kumar in Bengaluru)

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