Anglo-Dutch oil giant shell is reducing its investments by €13bn over the next three years because of the low oil price.

The decision means Shell will cancel and defer projects up to 2017.

If necessary, the company will take further steps to reduce spending, director Ben van Beurden said at an update on the company’s 2014 results. However, the company is ‘being careful not to over-react to the recent fall in oil prices,’ Van Beurden said.

Despite the low oil price, Shell’s gross profit reached €19bn last year, compared with €16.7bn in 2013. The price of crude has halved in six months.

Shell is the first of the big five oil companies to publish its 2014 figures.