Shares in energy giant ConocoPhillips (NYSE:COP) dropped as it confirmed it will continue to cut back on its capital expenditure in the wake of the slumping oil price.
The firm will reduce its spending to US$6.4bn for 2016 it announced on Thursday, including slashing its quarterly dividend.
ConocoPhillips said it will cut its quarterly dividend to 25 cents a share from the previous 74 cents a share.
Chairman and chief executive Ryan Lance said: “While we don't know how far commodity prices will fall, or the duration of the downturn, we believe it's prudent to plan for lower prices for a longer period of time.”
The company, which before the start of the New Year had forecast 2016 expenditure at US$7.7bn, also cut it operating cost estimate to U$7bn from US$7.7bn.
“The actions we have announced will improve net cash flow by US$4.4bn in 2016,” he added.
ConocoPhillips also posted a fourth-quarter loss of US$3.5bn, or US$2.78 a share largely due to a US$2.7bn in write-down of its assets, reflecting commodities price volatility.