British energy company BP is entering a reset phase focused on streamlined spending in the low oil price climate, Chief Executive Bob Dudley said Tuesday.

"Our focus must now be on resetting BP: managing and rebalancing our capital program and cost base for the new reality of lower prices while always maintaining safe, reliable and efficient operations," Dudley said in a statement announcing fourth quarter results.

The oil major reported a replacement cost loss during the fourth quarter of $968 million, compared with a profit of $1.5 billion during the same period last year. Replacement cost is similar to net income reported by the British company's U.S. counterparts.

BP began streamlining operations late last year. The company last year said it could cope with lower oil prices, but Dudley said then the company was working on a "simplification plan" to deal with the current climate.

In its fourth quarter statement, the company said it was now preparing for a short- to mid-term future with oil prices staying relatively suppressed. Though rebounding in recent sessions, crude oil prices are still about half of their June value.

BP already announced plans to shed staff and enacted a pay freeze last month. It ended 2014 with net debt of $22.6 billion.

In October, the company said it may cut as much as $2 billion in capital expenditures across the board for 2015.