Royal Dutch Shell shares rose after it confirmed it would cut 10,000 jobs and a sharp fall in annual profits.
Shell extended gains to 7% as it said it made $1.8bn (£1.23bn) for the fourth quarter, compared with a $4.2bn profit for the same period the year before.
Full-year earnings have seen their steepest fall in 13 years, from $19bn in 2014 to $3.8bn last year.
Oil prices have fallen steadily, from more than $100 a barrel 18 months ago to around $30 a barrel now.
Nevertheless, Shell has maintained its dividend payout to shareholders, a move that relieved investors.
Oil companies and their suppliers have been cutting back hard on investment and jobs as the low price eats into profits and makes investment less worthwhile.
Shell’s arch-rival, BP, announced a profits slump of 51% to $5.9bn for 2015 and a further 3,000 job cuts earlier this week.
‘New chapter’
Shell had already made clear when investors were preparing to vote on its planned takeover of BG that its profit figures for 2015 would be hit.
It also said thousands of job would go, because of its takeover of BG.
Royal Dutch Shell’s chief executive, Ben van Beurden, said the company was entering a new phase: “The completion of the BG transaction, which we are expecting in a matter of weeks, marks the start of a new chapter in Shell, rejuvenating the company and improving shareholder returns.
“We are making substantial changes in the company… 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 added he would take further action if necessary: “Shell will take further impactful decisions to manage through the oil price downturn, should conditions warrant that.”
