BP is holding its annual general meeting on April 17 in the early days of its strategy reset to return to its core oil and gas business while oil prices have crashed by more than $10 per barrel this month.

Shareholders, especially activist hedge fund Elliott, will want to make their position known at the AGM votes on Thursday. Activist investor Elliott, which has been pushing for dramatic changes at BP since amassing a 5% stake in the supermajor, is likely to express its continued frustration with BP’s performance by voting against the re-election of directors.

Fortunately for BP, one of the constant campaigners that has been pushing for years for shareholder resolutions on emissions and climate accountability at AGMs, Follow This, has just decided to pause its climate resolutions at Big Oil – for the first time since 2016 – citing investor hesitation about ESG investments and campaigning.

Related: U.S. Oil Production Cuts May Be Avoided

“Shareholder resolutions have been critical in compelling five oil majors to set emissions reduction targets, but most institutional investors are reluctant to use their voting power,” Mark van Baal of Follow This said last week ahead of the AGMs at the oil and gas supermajors.

“It’s a strategic pause to get more investors on board and to discuss how to work together to uphold shareholder rights.”

The backlash against ESG, combined with the trade war, has left investors uncertain about how to proceed with climate action, Follow This said.

The climate campaign group noted that it “speaks with investors about addressing these barriers, exploring what prevents investors, like BlackRock, LGIM, and NBIM, from casting their votes in favour of Paris-alignment despite their public climate commitments.”

In BP’s case, however, the step-back of Follow This appears to be the only good news for the company and its management these days.

BP’s shares continue to lose more than its peers, including Shell and the U.S. supermajors, and have dipped in value more than those of the other majors during the oil price rout triggered by fears of weaker oil demand in light of the trade wars and uncertainty about tariffs.

Year to date, BP’s stock has plunged by 18% despite the strategy reset announced at the end of February. To compare, Shell’s shares have lost 13% so far this year, while Exxon and Chevron have dropped by 4% and 6% respectively—much less than the oil price decline.

BP’s strategy reset has failed to lift its stock performance despite the supermajor walking back on renewable energy spending and stepping up investment in fossil fuels. BP vowed to increase its investment in upstream oil and gas to $10 billion per year while slashing spending on clean energy by more than $5 billion a year.

The pressure on BP became more intense this year after Elliott bought a nearly 5% stake in the supermajor and demanded changes in strategy or even board reshuffles.

In a move seen as a win for Elliott, BP chair Helge Lund this month announced his intention to step down from the role “most likely during 2026.”

This announcement doesn’t mean Elliott wouldn’t vote against Lund or other board directors at the shareholders’ meeting this week to express its dissatisfaction with how the company has been run.

In a very unfortunate development for BP, any positive share performance from the strategy reset was obliterated within a month by the tariff and trade wars, which crashed the price of Brent Crude oil to the low $60s per barrel.

Lower oil prices could test BPs ability to sustain its returns to shareholders, including dividends, especially as the supermajor flagged an increase in its net debt in the first quarter of 2025.

BP warned of a weak natural gas trading result for the first quarter and said its net debt at quarter-end is expected to be around $4 billion higher compared to the fourth quarter, primarily due to a working capital build. This, BP said, is largely expected to reverse, reflecting seasonal inventory effects, timing of payments including annual bonus payments, and payments related to low carbon assets held for sale.

But Elliott and other shareholders will want more, and BP could struggle to deliver.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com

• Here’s What’s In The New Rough Draft U.S.-Iran Nuclear Deal
• IEA Cuts Oil Supply Estimate on Lower-than-Expected U.S. and Venezuelan Output
• Oil Markets Readjust as the Reality of Trump's Trade War Sinks In

Read this article on OilPrice.com