Shell slashes dividend for first time since 1945
The British-Dutch oil giant declared an interim dividend of $0.16 per share, down from $0.47 a year earlier
Stocks impacted: Royal Dutch Shell Plc (RDSA)
Royal Dutch Shell said on Thursday said that it is cutting its first-quarter dividend by 66%, citing a drop in earnings for the period amid a collapse in oil and gas demand and prices. The company’s profit for the three months ended March. 31 fell to $2.76 billion from $5.29 billion a year earlier. Net profit plunged to a $24 million loss from a $6.00 billion profit. As a result, the British-Dutch oil giant declared an interim dividend of $0.16 per share, down from $0.47 a year earlier. The decision highlights the risk of a prolonged period of economic uncertainty, weaker commodity prices and uncertain demand outlook. As a reminder, Shell said last month that it intends to reduce 2020 capital expenditure below $20 billion, from the original $25 billion plan. Shell stocks declined by over 5% after the report.
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