BP said Tuesday that net profits rocketed in the third quarter, aided partly by cost-cutting, and announced further spending cuts in response to low oil prices.

Earnings after tax soared to $1.6 billion (1.5 billion euros) in the three months to September, compared with just $46 million in the same period a year earlier, BP said in a results statement.

Chief Financial Officer Brian Gilvary added BP was making "good progress" in adapting to a "challenging" oil price environment.

The company meanwhile cut 2016 capital expenditure to $16 billion, compared with the previous guidance of $17-19 billion.

BP added that profit, adjusted for exceptional items and oil inventory changes, dropped to $933 million in the reporting period from $1.8 billion a year earlier, as underlying earnings took a hit from low oil prices.

That did however beat market expectations of $719.2 million, according to analysts polled by Bloomberg.

BP also warned oil refining margins would continue to take a hit in the final three months of the year, but it added it expects production to increase slightly in the fourth quarter.

The group is slashing costs in the face of weak oil global oil prices and sliding refining margins, with the cost of crude at around $46 per barrel in the third quarter compared with $50 a year ago.