BP’s profits fell almost 50 per cent in the third quarter as low oil prices continued to hit the sector.

Profit adjusted for one-off costs dropped to $933 million (£762 million) from $1.8 billion (£1.5 billion) a year earlier.

Rival oil company Royal Dutch Shell reported third-quarter profits of $2.8 billion, up 18 per cent on last year.

BP’s earnings have fallen for nine consecutive quarters, piling pressure on chief executive Bob Dudley to cut spending and sell assets whilst still maintaining future growth.

The boost to oil prices following OPEC’ September decision to cut output is fading and BP and other oil giants will need to continue cutting spending so they can maintain dividend payouts.

The company will trim capital expenditure to about $16 billion (£13 billion) this year, compared with a previous estimate of less than $17 billion (£14 billion).

“We continue to make good progress in adapting to the challenging price and margin environment,” chief financial officer Brian Gilvary said. ”At the same time we are investing in the projects, businesses and options to deliver growth in the years ahead.“

Brent crude oil averaged $46.99 a barrel in the quarter, down from $51.30 a year earlier and $47.03 in the prior three months. The decline that began in mid-2014 has forced explorers to delay projects, cancel billions of dollars of investments and eliminate thousands of jobs.

Prices have increased about 7 per cent since OPEC’s surprise U-turn on 28 September. BP reiterated its aim of covering capital expenditure and dividends without having to increase borrowing if the oil price remains within $50 and $55 next year.

BP is renegotiating contracts and reducing the size of projects to lower costs.

Other oil companies have also been struggling. Exxon Mobil, the world’s most valuable oil company, said on 28 October its production sank to a seven-year low, extending its run of profit declines.

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Chevron posted its first profit in a year though production fell short of expectations, while cost cuts helped Total beat estimates,

BP’s downstream business, ie what it does after it removes crude from the ground, saw earnings fall to $1.4 billion in the quarter from $2.3 billion a year earlier.

While BP’s exploration and production business has struggled during the oil slump, the refining and marketing division helped buoy earnings over much of last year. Refineries benefited from the falling cost of crude while fuel demand rose, but that led to over-production and huge stockpiles that now can’t be absorbed.

BP and competitors including Shell will be hoping OPEC members agree to production cuts when they meet at the end of November, to push up prices. Cost cuts have so far helped large oil companies, many have amassed substantial debts to maintain the dividend payments their shareholders expect.

Shell has been under pressure from shareholders to cut annual spending to ensure it can maintain its dividend. “Lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain,” chief executive Ben van Beurden said in a statement.

Shell's shares were up 3.4 per cent on Tuesday morning. Shell said its 2017 capital spending was expected to be around £20 billion, at the bottom of the range previously given.