Royal Dutch Shell is to cut 15 billion US dollars (£9.9 billion) from its spending plans over the next three years as it responds to sliding oil prices.
The Anglo-Dutch oil giant pledged not to over-react to the oil decline and said lower prices created opportunities to reduce its own costs.
The comments came as Shell unveiled results showing a 12% rise in underlying profits to 3.26 billion US dollars (£2.15 billion) for the final quarter of 2014.
The performance was boosted by recent efforts to restructure its downstream operation, as well as increased output of higher-margin products.
However, profits for its upstream exploration and production division still fell by 30% to 1.73 billion US dollars (£1.14 billion) in the quarter.
Chief executive Ben van Beurden said: "We are taking a prudent approach here and we must be careful not to over-react to the recent fall in oil prices.
"Shell is taking structured decisions to balance growth and returns."
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