BP revealed the cost of one of the worst periods in its recent history today by reporting a 45 per cent plunge in quarterly profits.

The energy giant showed that falling production around the world and refinery shutdowns in the US meant it missed out on sky-high crude oil prices.

Underlying profits in the three months to September 30 were $3.87 billion (£1.89 billion), compared with $6.98 billion in the same period a year ago.

On a ‘clean’ basis, which strips out one-off gains or losses, profits were down 26.7 per cent on the third-quarter last year at $4.21 billion.

The results are widely expected by analysts to represent a nadir for the group as new chief executive Tony Hayward desperately battles to turn the business around.

Mr Hayward, who succeeded Lord Browne of Madingley in May, said last month that BP’s revenue performance would be “dreadful”.

BP shares lost 1.5p at 603.5p in early trading.

James Neale, analyst at Citigroup, said: "On a scale of 1 to 'Dreadful' .. the results were not bad and the market will be relieved. However, anticipation levels are high that the fourth quarter will mark the start of the company's rehabilitation."

Two weeks ago Mr Hayward laid out plans for a “fundamental shift” in the way BP works in a restructuring that is expected to lead to thousands of job cuts over the next two years.

This morning's statement made no mention of where the axe might fall. It is known that up to four layers of management are to be culled in various parts of the business.

BP has suffered from the continuing fallout from the Texas City refinery blast in the US, a series of leaks at its Prudhoe Bay oil field in Alaska, higher costs and delays to the start of production at major new oil fields.

The group today revealed that oil and gas production slumped 4 per cent to 3.6 million barrels a day in the third quarter. It still expects to hit an average of between 3.8 million to 3.9 million barrels a day for the full-year.

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