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Shell for the first time since the second world war, "trims" dividends

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Energy company was facing an unprecedented fall in oil demand due to pandemic coronavirus.

Shell for the first time since the second world war, "trims" dividends

the British-Dutch oil and gas company has reduced the dividend to 66% for the first time since 1940, to strengthen the capital structure during the unprecedented drop in oil prices.

Shell also suspended the next tranche of its stock repurchase program and declared that reduces the production of oil and gas by almost a quarter, after its net profit nearly halved in the first three months of 2020.

"Given the risk of a prolonged period of economic uncertainty, weaker commodity prices, higher volatility, and uncertain demand Outlook, the Board of Directors believes that maintaining the current level of income distribution is not reasonable," said Shell Chairman Chad Holliday.

for many years, Shell was proud to have never cut their dividend from 1940-ies, deciding not to take this step even during the deep recessions of 1980-ies.

Shell said it would cut its quarterly dividend to 16 cents a share from 47 cents over the last three months of 2019.

"a Reduction in dividends of 66% is a necessary evil" - analyst JP Morgan Christian Malcolm.

last year, Shell paid about $ 15 billion of dividends that it deals. the world's largest payer of dividends after the national oil company of Saudi Arabia Saudi Aramco.

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