BP has reported a 30% decline in third quarter profit, its lowest in nearly four years, as it suffered from lower crude prices and weaker profit margins on its refining activities.

The oil supermajor posted underlying replacement cost profit, its preferred measure, of $2.3 billion for the three months from July to the end of September. This was better than the $2.1bn anticipated by analysts amid the slowdown in global economic activity and oil demand, particularly in China.

The results will nonetheless increase pressure on chief executive Murray Auchincloss, who took up the post in January with promises to focus on BP's high-margin businesses. This has raised concerns over the group's energy transition strategy which under former CEO Bernard Looney called for a rapid expansion into renewables and less oil output.

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Earlier this month it was reported that BP had abandoned a flagship target to cut oil and gas output by 2030. The company has also scaled back its low-carbon hydrogen investments and plans to sell its onshore wind operations in the US.

“We have made significant progress since we laid out our six priorities earlier this year to make bp simpler, more focused and higher value,” Mr Auchincloss said in a statement.

“In oil and gas, we see the potential to grow through the decade with a focus on value over volume. We also have a deep belief in the opportunity afforded by the energy transition – we have established a number of leading positions and will continue high-grading our investments to ensure they compete with the rest of our business.”

The results were BP's weakest since the fourth quarter of 2020 when the industry was hit by the Covid pandemic. The group reported a net profit of $2.8bn in the second quarter of this year, and $3.3bn in the third quarter of last year.

Shares in BP were trading more than 2% lower as of mid-day.