Profit before tax at bp has dropped to $2.34bn (£1.8bn) in the nine months to September, a near four-year low as it continues to make the firm "simpler" and "more focused".

This drop comes after the oil and gas giant reached $14.8bn (£11.38bn) in the same period in 2023.

The results were expected, after bp issued a profit warning earlier this month, citing weak margins at refineries and lower sales on both petrol and other oil products.

In the nine months to September, the firm’s net debt crept up by 8% year-on-year to $24.2bn (£18.6bn), in line with expectations issued in the warning, while its underlying replacement cost of profit dropped by 28% to $7.7bn (£5.9bn).

These figures come after bp announced that it was looking to deliver at least $2bn (£1.5bn) in "sustainable cash cost savings" by the end of 2026.

In a statement, chief executive officer at bp, Murray Auchincloss, said: "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."

As part of the announcement, the oil and gas giant said that it increased its dividend by eight cent a share, and has launched a $1.75bn (£1.4bn) share buyback as part of its $3.5bn (£2.3bn) programme commitment for the second half of 2024.

Looking ahead, bp said its upstream product in Q4 is expected to be lower than the previous quarter, while also forecasting "seasonally lower volumes" in its customers business, with fuel margins remaining sensitive to movements in the cost of supply.

Head of equity research at Hargreaves Lansdown, Derren Nathan, added: "The fourth quarter could see cash flows come under more pressure, with production set to drop alongside the usual seasonality in the downstream business, on top of continuing low margins in refining and higher maintenance activity.

"But looking further ahead, bp is investing cleverly, pressing on with attractive exploration and development opportunities from Azerbaijan and Iraq through to the US Gulf. It’s also taken full ownership of both leading Brazilian biofuel producer Bunge Bionergia and its solar operation Lighsource bp.

"All in all, bp is taking a balanced approach to the energy transition, continuing to selectively add new sources of production whilst focusing on the higher-returning areas of renewable development. The current weakness in the shares represents something of an opportunity, but if net debt takes much longer to resume its downward trajectory investors are likely to remain cautious."

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