The new boss of Royal Dutch Shell today said the oil giant must "sharpen up in a number of areas" after the company reported a 48% slide in profits.
Ben van Beurden, who took the helm on January 1, highlighted lost momentum in Shell's operational delivery but said its overall strategy was robust.
He plans to cut the company's capital spending - resulting in some "hard choices on new projects" - to focus on improving returns.
His comments were made alongside annual results which confirmed the company's warning earlier this month about a poor final quarter of the year.
Profits for the three-month period slumped to 2.9 billion US dollars (£1.75 billion) from 5.6 billion US dollars (£3.4 billion) a year earlier, with the full-year figure down 23% to 19.5 billion US dollars (£11.8 billion).
Shell will reduce capital spending from 46 billion US dollars (£27.8 billion) last year to around 37 billion US dollars (£22.4 billion) and will halt exploration activities in offshore Alaska as a result of opposition from a US court.
The worsening security situation in Nigeria, where the company has a long-term presence, weak refining margins and low natural gas prices in North America have increased the pressure on Shell's performance.
The Dutch national rose through the ranks over three decades before securing the top post, beating competition from internal and external candidates.
He said the company will step up the pace of asset sales to around 15 billion US dollars (£9.1 billion) in the next year in both exploration and downstream.
Mr van Beurden said: "We are making hard choices in our worldwide portfolio to improve Shell's capital efficiency."
Royal Dutch Shell shares rose 2% today as it forecast a year-on-year increase of 4% in its first quarter dividend. Total payments for this year are expected to be in excess of 11 billion US dollars (£6.6 billion), it added.
Mr van Beurden said: "Our overall strategy remains robust, but 2014 will be a year where we are changing emphasis, to improve our returns and cash flow performance."