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HOUSTON - Royal Dutch Shell's profits fell 56 percent in the fourth quarter, its oil-production business hit hard by the market downturn but its refining and marketing side remained steady in the final three months of last year.

Shell said Thursday it banked a profit of $1.8 billion, or 29 cents a share, in the fourth quarter, down from $4.2 billion, or 66 cents a share, in the same period the year before.

The Anglo-Dutch oil major's upstream earnings fell 71 percent to $493 million, though the company said lower costs offset the plunge, while its downstream income dipped just 2 percent to $1.52 billion, partly the result of improving the unit's finances.

Shell is within weeks of closing its $54 billion acquisition of British gas producer BG Group, a deal that CEO Ben van Beurden said will rejuvenate the company and improve shareholder returns.

The company is planning to cut 2,800 jobs once the deal is closed and is restructuring its upstream business, cutting costs and spending. That would bring its headcount reduction since the downturn began to 10,000 employees and contractors. It cut its operating costs by $12.5 billion last year and is planning further cost-cutting this year.

For the full year of 2015, Shell's profits sank 80 percent to $3.8 billion.