BP bosses have unveiled plans to look for further cost cuts and conduct a “thorough” review of its portfolio as it comes under pressure from shareholders.

Chief executive Murray Auchincloss pledged the oil and gas group would do “better for its investors” and said there was “much more to do” under its current three-year plan.

BP has been under pressure from shareholders to boost profits and cut costs, with activist investor Elliott Management recently taking a 5% stake in the group.

The group saw half-year profits tumble by nearly a third as weaker oil prices weighed on earnings, although it posted a better-than-expected performance for the second quarter.

It reported a 32% fall in underlying replacement cost profits – the group’s preferred profit measure – to 3.73 billion US dollars (£2.81 billion) for the six months to June 30.

Underlying profits fell 15% year-on-year to 2.35 billion dollars (£1.77 billion) between April and June, although this was a significant improvement from 1.38 billion dollars (£1.04 billion) in the first quarter and better than most analysts had forecast.

BP’s aims to ramp up its overhaul process follows talks with incoming chairman Albert Manifold who starts next month, Mr Auchincloss said.

Mr Auchincloss said: “He and I have been in discussions and have agreed that we will conduct a thorough review of our portfolio of businesses to ensure we are maximising shareholder value moving forward.

“We are also initiating a further cost review and, whilst we will not compromise on safety, we are doing this with a view to being best in class in our industry.”

“BP can and will do better for its investors,” he added.

In another move to appease shareholders, the FTSE 100 firm also said it would buy back another 750 million dollars (£565 million) in shares and hike the quarterly dividend payout by 4%.