October 29, 2024 [Reuters]- BP on Tuesday reported a 30% drop in third quarter profit to $2.3 billion, the lowest in almost four years, weighed down by weaker refining margins and oil trading results.

The drop in profit from a year earlier was, however, smaller than expected. It comes amid a slowdown in global economic activity and oil demand, particularly in China, and raises pressure on CEO Murray Auchincloss who has vowed to boost BP’s performance amid investor concerns over its energy transition strategy.

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

BP shares, which opened 0.8% lower on Tuesday, have underperformed those of its rivals so far this year, falling 15% compared with a 2% decline for Shell and a 19% gain for Exxon Mobil as investors question the company’s ability to generate profits.

Auchincloss, who took up the job in January, has vowed to focus on high-margin businesses, distancing himself from predecessor Bernard Looney’s strategy to rapidly expand renewables and reduce oil and gas output.

Reuters reported earlier this month, citing sources, that BP has 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 U.S. onshore wind operations.

Sources also told Reuters that BP is considering selling a minority stake in its offshore wind business.

Auchincloss said on Tuesday that BP has the potential to grow oil and gas output through the end of the decade while it also continues to make high-grade investments in low-carbon and renewables.