Royal Dutch Shell shares fell on Thursday after the oil company missed profit expectations and announced a three-year, $15 billion (10 billion pound) cut in spending reflecting a steep fall in oil prices.
Chief Executive Ben van Beurden however warned against an over reaction to the 60 percent drop in oil prices since June, while keeping dividends unchanged to soothe investors.
"We are taking a prudent approach here and we must be careful not to over-react to the recent fall in oil prices," van Beurden said.
Shell shares were down 3.7 percent at 0826 GMT after the company's fourth-quarter 2014 adjusted net income of $3.3 billion missed market expectations by more than 20 percent.
"It was a big miss in upstream," said Raymond James analyst Bertran Hodee.