BP’s profits tumbled by nearly one-third in the third quarter to £1.75 billion, as a slump in refining margins weighed on income at the energy giant.

The FTSE 100 company reported that profits were down compared with the same period a year earlier as faltering global demand for oil hit its refining business.

BP reported an underlying replacement cost profit of 2.27 billion US dollars (£1.75 billion), beating analyst expectations but coming in lower than the 2.76 billion dollars (£2.15 billion) in the second quarter.

The profit figure represents a more than 30% slump from the 3.3 billion dollars (£2.54 billion) reported this time last year.

The slide in margins comes partly as a result of a more general downturn in global demand for oil recently, across consumer and industrial sectors, as Brent crude prices remain significantly down since the start of 2024.

That is despite escalating tensions in the Middle East and fears over how conflict could affect energy sites in the region, which pushed prices up a little in recent weeks.

Opec, the cartel of major global oil producing nations, also lowered its outlook for worldwide oil demand growth this year and next, in a report earlier this month.

The figures come amid a push by chief executive Murray Auchincloss to boost performance at the oil major amid a long-term slump in its share price of late.

That has included a move to scale back the firm’s renewable energy plans and focus on oil and gas to regain investor confidence.

BP said it has picked out more than 500 million dollars (£385 million) in cost cuts for next year, as part of a two billion dollar (£1.5 billion) savings drive expected by the end of 2026.

I am absolutely clear that the actions we are taking will grow the value of BP

Mr Auchincloss said on Tuesday: “We have made significant progress since we laid out our six priorities earlier this year to make BP simpler, more focused and higher value.

“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.

“I am absolutely clear that the actions we are taking will grow the value of BP.”

BP held its dividend to shareholders steady at 8 cents (6.17p) per share while it kept the rate of its share buyback programme unchanged at 1.75 billion dollars (£1.35 billion) over the next three months.