BP BP.L will simplify its business and become more pragmatic in its investment decisions, CEO Murray Auchincloss told Reuters as he seeks to allay investor concerns over its energy transition strategy.

“The past four years have been about origination and now it’s time to simplify” as BP moves into a construction phase, he told Reuters in an interview after the company reported stronger than expected fourth-quarter results.

“We will pragmatically adapt to what’s happening with demand in society,” he said, adding that BP will go for the “highest return and highest value projects”.

Auchincloss became permanent CEO in December after being named interim CEO on Sept. 12 when Bernard Looney abruptly stepped down for failing to fully disclose details of past personal relationships with colleagues.

The company’s shares were more than 6% higher by 0851 GMT after BP also unexpectedly boosted its share buyback programme.

They have, however, underperformed the stock of BP’s rivals in recent months amid investor concerns over its strategy and the leadership upheaval.

Auchincloss vowed to stick to a strategy aimed at reducing oil and gas output and sharply growing renewables and low-carbon businesses by the end of the decade.

“Our destination is unchanged.”

He added that BP has 12 to 16 oil and gas projects that could potentially get the green light for development over the next two years.

Investors are now seeking stability and certainty, which is why BP announced plans to repurchase at least $14 billion of shares over the next two years, he said.

“Investors are supportive of the strategy and given the strength in the balance sheet we can give them a bit more certainty.”
Source: Reuters (Reporting by Ron Bousso, Editing by Louise Heavens, Kirsten Donovan)