Royal Dutch Shell has announced it will reduce costs and spending to maintain financial stability during the coronavirus pandemic. The UK/Netherlands based company said it needed to be “well-positioned for the eventual economic recovery”.

It said it will reduce its capital expenditure for 2020 by $5bn, to $20bn or less. It originally planned to spend more than $25bn. Moreover, the company said it will also cut £3-4bn from the previous year’s operating costs.

In a statement, the company said: “Shell is still committed to its divestment programme of more than $10 billion of assets in 2019-20 but timing depends on market conditions.” Because of these delays, Shell will not buy back shares as planned.

Shell CEO Ben van Beurden said: “The combination of steeply falling oil demand and rapidly increasing supply may be unique, but Shell has weathered market volatility many times in the past.”

“In these very tough conditions, I am very proud of our staff and contractors across the world for maintaining their focus on safe and reliable operations while also ensuring their own health and welfare and that of their families, communities and our customers.”