• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 49 mins "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 day Energy Armageddon
  • 12 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 21 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 3 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 6 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 6 days The Federal Reserve and Money...Aspects which are not widely known
  • 6 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 2 hours Wind droughts
  • 7 days Goldman Betting on Cryptocurrencies
  • 10 days Сryptocurrency predictions
Nigeria’s Oil Industry Can Flourish Despite Oil Theft

Nigeria’s Oil Industry Can Flourish Despite Oil Theft

While Nigeria’s oil industry is…

Are Oil And Gas Lobbyists Influencing The COP Summits?

Are Oil And Gas Lobbyists Influencing The COP Summits?

Environmentalists fear that the next…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Shell Announces First Dividend Cut Since WWII

The coronavirus pandemic will change the world and the oil industry forever, oil and gas supermajor Shell said on Thursday as it slashed its dividend for the first time since World War II to preserve cash and value in a highly uncertain macroeconomic environment.

Shell reported on Thursday current cost of supplies (CCS) earnings excluding identified items—its proxy for net profit—of $2.957 billion for Q1, down by 46 percent on the year, reflecting lower realized oil, gas, and LNG prices, weaker realized refining and chemicals margins, and lower sales volumes.

While the earnings beat analyst estimates, Shell’s outlook was not optimistic at all, with chief executive Ben van Beurden saying that “The global economic decline and uncertain outlook may have a significant impact on our profitability, cashflow and our balance sheet.”

“And we are taking decisive action to reduce our spending, increase our liquidity and effectively position our business to manage through the deteriorating macro-economic and commodity price outlook,” Shell’s top executive said, adding that the group is cutting its quarterly dividend, beginning this quarter.

Shell is slashing its dividend to US$0.16 per A ordinary share and B ordinary share, down by 66 percent from the US$0.47 dividend for the same quarter last year.

This dividend cut is the first at Shell since World War II, reflecting the severe nature of the effect that the pandemic and demand collapse have had on Shell’s business.

Shares in Shell (NYSE: RDS.A) tanked by 12 percent at 10:09 EDT in New York, and its shares in London were also crashing by 12 percent at 15:09 London time.

“Given the continued deterioration in the macroeconomic outlook and the significant mid and long-term uncertainty, we are taking further prudent steps to bolster our resilience, underpin the strength of our balance sheet and support the long-term value creation of Shell,” van Beurden said.

There will be changes in people’s lifestyles, and the oil industry will never be the same, van Beurden said in an interview with Bloomberg Television after the release of the results. van Beurden later said at a press conference:

“We do not expect a recovery of oil prices or demand for our products in the medium term.”  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News