Royal Dutch Shell has reported a profit of $16.5bn (£12.7bn) in 2019, down 23% from the previous year.

The oil giant also said its fourth quarter profit had fallen by nearly half to $2.9bn (£2.2bn), its lowest in more than three years.

Rising tensions in the Middle East and the first stage of a trade deal between the US and China helped oil prices top $70 a barrel early in January.

However, that fell below $60 earlier this week and on Thursday morning was sitting around $58.80 (£45.22), as the effect of China’s coronavirus outbreak starts to become clear.

Ben van Beurden, Royal Dutch Shell’s chief executive, said: “The strength of Shell’s strategy and portfolio has enabled delivery of competitive cash flow performance in 2019 despite challenging macroeconomic conditions in refining and chemicals, as well as lower oil and gas prices.”

The company’s intention to complete its $25bn (£19bn) share buyback programme in 2020 remains “unchanged”, he added, despite the slowing global economy.

The share buyback programme was launched in 2018, following Shell’s assurances it would buy back its own stock once it has paid down its debt accumulated through the $54bn acquisition of BG Group in 2016.

Shell also said it had taken a $1.6bn (£1.2bn) charge on its US gas fields.

In recent months, its rivals BP and Chevron have written down billions of dollars of shale assets.

Shell shares were down 3% in early trading.

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