(Reuters) - BP's fourth-quarter profit fell to $1.17 billion on Tuesday, marking the lowest earnings for the oil major in four years as weak margins dented its refining business.

The 61% drop in quarterly profit from last year, coming just days after reports of activist investor Elliott Investment Management building a stake in the company, has heightened investor hopes for board changes and strategic shifts to boost returns, putting additional pressure on CEO Murray Auchincloss.

BP's results were the weakest since the fourth quarter of 2020, when profits plummeted during the pandemic, intensifying challenges for Auchincloss, who has pledged to improve BP's performance amid investor concerns about its energy transition strategy.

BP's underlying replacement cost profit, the company's definition of net income, dropped to $1.17 billion in the fourth quarter ended December 31, from last year's $2.99 billion.