Global energy demand could slump by 6% in 2020 due to coronavirus lockdowns and travel restrictions in what would be the largest contraction in absolute terms on record, the International Energy Agency (IEA) said on Thursday.
Shell paid about $15 billion in dividends last year making it the world’s biggest payer of dividends after Saudi Arabia’s national oil company Saudi Aramco. For years, Shell has taken pride in having never cut its dividend since the 1940s, resisting such a move even during the deep downturns of the 1980s.
Because of terrible oil climate, Royal Dutch Shell was forced to cut its dividend for the first time since World War Two on Thursday as the energy company retrenched in the face of an unprecedented drop in oil demand due to the coronavirus pandemic.
Its first-quarter net income attributable to shareholders based on a current cost of supplies and excluding identified items, fell 46% from a year earlier to $2.9 billion, above the consensus in an analyst survey provided by Shell.
Shell’s shares in London dropped 6.7% in early trading on Thursday.
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