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Shell Cuts Its Dividend

Shell Cuts Its Dividend

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Royal Dutch Shell has slashed its dividend for the first time since World War II after profits were wiped out by a historic collapse in oil demand caused by the coronavirus pandemic.

The Anglo-Dutch firm, one of the world’s largest oil companies, said in a statement Thursday that it will cut its quarterly dividend to 16 cents per share, from 47 cents previously. It posted a net loss of $24 million for the first quarter of 2020, compared with a profit of $6 billion in the same period a year ago.

Shares in the company plunged as much as 8% in London on Thursday morning.”The world has seriously changed over the last few months,” Royal Dutch Shell (RDSA) CEO Ben van Beurden said in a video recorded from his home and posted to the company’s website. “The global economic decline and uncertain outlook may have significant impacts on our profitability, cashflow and balance sheet,” he added.