BP has seen its profit drop by 49.3% year-on-year in the first three months of its financial year to $1.38bn.

The oil and gas giant said the fall was a result of "lower refining margins, a weak gas marketing and trading result and an average oil trading contribution", although this was partially offset by a higher customers result.

Furthermore, its operating cash flow dropped annually by 43% to $2.8bn, reflecting what it described as "seasonal inventory effects" and the timing of various payments including annual bonus payments.

Earlier in the year, BP launched a company "reset", as it plans to drive improved performance across the company. As a result, it has launched plans to increase its oil and gas investment to approximately $10bn per annum.

The latest results come as BP announced that its strategy and sustainability chief, Giulia Chierchia, will step down from 1 June and not be replaced.

Reuters has reported that activist investor, Elliot, demanded the change, alongside other moves, to "improve accountability".

Chief executive officer at BP, Murray Auchincloss, said: "In February, we announced a fundamental reset of our strategy - to grow the upstream, focus the downstream and invest with discipline in the transition - and we have already made significant progress.

"So far this year we have started up three major projects, made six exploration discoveries and have progressed our divestment programme - all while delivering strong operational performance, with over 95% upstream plant reliability supporting the best operating efficiency on record, and over 96% refining availability. We continue to monitor market volatility and changes and remain focused on moving at pace."

Looking ahead to the rest of the year, BP expects its upstream production to be lower, with underlying production from oil to be broadly flat, while its gas and low carbon energy production will be lower.

It also expects investment and other proceeds, which will be weighted towards the second half, to be around $3bn to $4bn.

Investment director at AJ Bell, Russ Mould, commented: "It is early days for BP and its new strategy under Auchincloss and chief financial officer Kate Thomson, but investors do not seem impressed by the first set of quarterly results, as the shares fall back to levels which mean they are no higher now than in early 1997.

"BP’s renewed emphasis on maximising the value of its existing hydrocarbon assets is off to a sticky start, since both oil and natural gas prices are under pressure. Worries over the impact on global growth of President Trump’s tariff and trade policies are to blame here, coupled with increased OPEC+ production and American plans to boost shale output. None of these are within BP’s control."

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