(MENAFN- ProactiveInvestors)Royal Dutch Shell (LON:RDSB) blamed low oil prices for a 44% fall in fourth quarter earnings and said it was axeing or delaying projects to save cash. Shell said fourth quarter 2015 earnings excluding identified items on a current cost of supplies basis were US$1.8bn compared with US$3.3bn in the same period a year ago. For the full year earnings on the same basis dropped 53% to US$10.7bn against US$22.6bn in 2014. It said earnings in its production arm took a hit from the "significant" decline in oil and gas prices partly offset by lower costs. The impact of the oil price fall was offset by a strong performance in refining which benefited from the lower oil prices and more demand from fuel users such as motorists. Shell which has now had approval from both sets of shareholders for its tie-up with BG Group (LON:BG.) said it was expecting the completion of the deal "in a matter of weeks". Some investors such as Standard Life voted against the deal amid concerns that it was no longer viable following the steep fall in oil prices. Chief executive Ben van Beurden reiterated that he believed he deal would improve shareholder returns but said the company was continuing to cut costs. He said: "For 2016 we have exited the Bab sour gas project in Abu Dhabi and are postponing final investment decisions on LNG Canada and Bonga South West in deep-water Nigeria. "Operating costs and capital investment have been reduced by a total of US$12.5bn as compared to 2014 and we expect further reductions in 2016. "As a result of our actions in 2015 we have retained a strong balance sheet position with 14% gearing. "Shell will take further impactful decisions to manage through the oil price downturn should conditions warrant that. "Shell's dividends for 2015 were US$1.88 per share and are expected to be at least US$1.88 per share in 2016 as previously announced.'
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