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, Paralel.Az reports citing Reuters.

The decline was smaller than expected amid a slowdown in global economic activity and oil demand, particularly in China, but raises pressure on CEO Murray Auchincloss, who has vowed to boost BP's performance in the face of investor concerns over its energy transition strategy.

"We've been making massive progress focusing and simplifying the business," Auchincloss told Reuters.

BP shares, which were trading 4.25% lower by 1357 GMT, compared with a 0.5% drop for rival Shell, have underperformed those of its rivals so far this year, falling 18% compared with a 2.7% decline for Shell and a 18% gain for Exxon Mobil as investors question the company's ability to generate profits. A 9% annual rise in BP's debt levels has further worried investors.

The energy giant maintained its dividend at 8 cents a share after raising it in the previous quarter. It also kept the rate of its share buyback programme at $1.75 billion over the next three months and committed to do so again for the following three months. BP will update its financial framework in February.

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 had abandoned a flagship target to cut oil and gas output by 2030.

Auchincloss told Reuters on Tuesday that BP will focus on value, not volume, for its operations. "Whenever in the past round we've chased volume, we've gotten it wrong," he said.

The company has also scaled back its low-carbon hydrogen investments and plans to sell its U.S. onshore wind operations.

Auchincloss also said 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.

"There still looks potential for a differentiated growth, driven out of fuels marketing, biogas and the core Upstream business, but it is unlikely that the market focuses on this potential until we get re-worked financial targets," Citi analysts said in a note.