Norwegian oil main Equinor has selected a money dividend of $zero.09 per share for the primary quarter of 2020, a discount of 67 per cent in comparison with the fourth quarter of 2019.

As acknowledged in Equinor’s dividend coverage, when deciding on upcoming
dividend funds it takes into consideration anticipated money circulate, capital
expenditure plans, financing necessities, and applicable monetary
flexibility.

According to the corporate’s Thursday assertion, Equinor determined to
make a major discount of the quarterly money dividend for the primary
quarter of 2020 which displays the present “unprecedented market situations and
uncertainties”.

Eldar Sætre, president and CEO of Equinor, mentioned: “Equinor has already taken forceful actions to strengthen our liquidity and monetary resilience beneath the present circumstances.

In this extraordinary market scenario, we’ve now additionally determined to cut back the money dividend for the primary quarter of 2020 by 67 per cent, in comparison with the proposed fourth quarter 2019 dividend”.

In addition to this, Equinor lately launched a number of actions to
improve monetary resilience in response to the present market situations.
Namely, it suspended the buy-backs beneath the share buy-back programme, as effectively
as a bond issuance of $5 billion.

The firm additionally launched a $three billion motion plan in 2020 to strengthen monetary resilience from capital expenditures, working prices, and exploration expense reductions.

Equinor added that the aim of the mixed efforts, together with
a discount in dividend, was to safe steadiness sheet capability, strengthen
liquidity, and help continued investments in a high-quality mission
portfolio. This gives for long-term aggressive development and shareholder
worth.

With the beforehand introduced actions, Equinor may be natural money
circulate impartial earlier than capital distribution in 2020 with a median oil worth
round $25 per barrel for the remaining a part of the yr.

It is value noting that the ex-date for the primary quarter dividend
can be 14 August 2020.

The publish Equinor slashes quarterly money dividend by two thirds appeared first on Offshore Energy.

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