Oilfield providers supplier Halliburton has determined to chop its dividend amid uncertainties associated to the length of the market downturn.

Halliburton mentioned on Wednesday that its board of administrators had declared a 2020 second-quarter dividend of 4 and one-half cents ($zero.045) a share on the corporate’s frequent inventory payable on 24 June 2020, to shareholders of document on the shut of enterprise on three June 2020.

The determination to set the quarterly dividend at a decrease degree displays the present market circumstances and uncertainties relating to the depth and length of this downturn, Halliburton defined.

Halliburton’s board of administrators has additionally permitted a 20 per cent voluntary discount to their annual retainer. The board’s motion follows wage reductions already taken by the members of the chief committee.

Jeff Miller, Halliburton chairman, president and chief government officer, mentioned: “Halliburton continues to take measures to strengthen our liquidity and monetary resilience underneath the present circumstances. We applied a $1 billion motion plan to scale back overhead and different prices, lowered capital expenditures roughly 50 per cent from 2019 ranges and accelerated the implementation of our North American service supply enchancment technique”.

Miller continued: “Today’s dividend announcement displays our dedication within the close to time period to ship shareholder returns whereas sustaining a robust liquidity place. The dividend helps our shareholder worth proposition by sustaining an inexpensive payout as we navigate these unsure instances.

More importantly, it locations the corporate in a robust place, financially and structurally, to reap the benefits of the market’s eventual restoration”.

As beforehand reported, Halliburton has decreased its workforce by round 5,000 for the reason that oil worth collapse.

Halliburton began the yr with 55,000 workers the world over, however the workforce has now shrunk to about 50,000 individuals, in line with a submitting with the U.S. Securities and Exchange Commission from April 24.

The put up Halliburton cuts dividend on account of market circumstances appeared first on Offshore Energy.

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