This is even as the energy giant also suspended the next tranche of its share buyback programme, following a 46% drop in first-quarter net income to
The company said it had also cut activity at its refining business by up to 40% in response to the sharp fall in demand for oil.
The company's Chief Executive Officer,
He said
Cutting the dividend for the first time in 80 years will give the company some much-needed financial relief.
The company debt has ballooned from
Also, the energy industry leading company is in the process of trying to turn itself away from being thought of as an oil and gas company into an environmentally-conscious energy company.
It may be painful for pension funds, but this moment gives the company the cover it needs to change direction.
Over the past few months, global demand for crude oil grades has shrank significantly as the COVID-19 pandemic impact had compelled governments across the world to lockdown their territories thereby stalling economic and social activities.
As a result of the lingering ugly development, oil firms have resorted to renting tankers to store the surplus supply until last week when they were no longer to take delivery of new supplies. Since then, global oil market prices have maintained a sustained slide.
Industry analysts believe that the collapse in the oil price has given
Copyright Daily Trust. Distributed by AllAfrica Global Media (allAfrica.com)., source