Royal Dutch Shell, Europe’s largest oil company, reported its lowest annual income in over a decade on Thursday and said it would take further steps to cut costs to cope with weak oil prices if needed,Reuters reports.
Shell, whose shareholders last week approved its takeover of rival BG Group, said 2015 income fell 87 percent to $1.94 billion, in line with analysts’ estimates, as its oil and gas production unit took a big hit from slumping oil prices.
“Shell will take further impactful decisions to manage through the oil price downturn, should conditions warrant that,” Chief Executive Ben van Beurden said in a statement. Shell is reducing investment, cutting nearly 10,000 jobs and selling assets to cope with the downturn. The CEO told reporters he believed oil prices had reached, or were near, the bottom of the cycle, pointing to growing demand.