On an annual basis, Shell posted the lowest income in 13 years in 2015, according to Reuters, with income falling 87 percent from the previous year to $1.94 billion.
Shell's chief executive, Ben van Beurden, said the company expected to make further reductions to capital spending in 2016 and staff reductions in both Shell and BG Group, the natural gas company Shell is taking over following shareholder approval last week.
"We are making substantial changes in the company, reorganizing our Upstream (exploration and production), and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices. As we have previously indicated, this will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies," he said in an earnings statement.
The bad news was not confined to Shell alone. Earlier on Thursday, Norwegian petroleum company Statoil also reported a cut in capital spending as oil prices continue to drag on the major.
In the fourth quarter of 2015, Statoil posted adjusted earnings of 15.2 billion Norwegian crowns ($1.78 billion) but ahead of the 13.9 billion crowns expected by analysts polled by Reuters. Still, adjusted earnings were down from 26.9 billion crowns in the same period the year before, marking a 44 percent decline.
Although income was higher than expected, the group posted a net loss of 9.2 billion crowns in the fourth quarter, worse than the 8.9 billion crowns loss seen in the same period the year earlier. Analysts polled by Reuters had expected net profit of around 3.18 billion crowns .