Royal Dutch Shell has cut its dividend for the first time since World War Two following the collapse in global oil demand due to the coronavirus pandemic.
The energy giant also suspended the next tranche of its share buyback programme.
The move came as it announced a 46% fall in first-quarter net income to $2.9bn (£2.3bn).
Chief executive Ben van Beurden warned of "continued deterioration in the macroeconomic outlook".
He said Shell was taking "further prudent steps to bolster our resilience" and "underpin the strength of our balance sheet".
Shell is cutting its quarterly dividend by two-thirds, from 47 cents to 16 cents, starting in the first quarter of this year.
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.
David Barclay, senior investment manager at Brewin Dolphin, said: "Royal Dutch Shell's decision to cut its dividend for the first time since World War Two reflects the unprecedented economic impact of Covid-19.
"There was a great deal of speculation about what the energy company would do leading up to these results and the market was braced for bad news.
"On the face of it, the dividend cut and cancellation of share buybacks may be seen by some shareholders as a negative move in the short term.
However, looking further ahead it could well prove to be the right step, as Shell looks to strengthen its financial position and cut costs during a very difficult time."
Latest Stories
-
‘Flawed from the start’ – Martin Amidu dismisses Supreme Court ruling backing Majority Leader
26 mins -
Afenyo-Markin’s bended knees recall plea insulting to electorate, waste of public funds – Martin Amidu
1 hour -
Martin Amidu: The majority leader’s memorandum to recall Parliament is needless now
2 hours -
Parliamentary disruption is a self-inflicted wound – Speaker’s lawyer criticises Supreme Court plaintiff’s actions
2 hours -
Seeds are more expensive than gold – Netherlands Ambassador calls for collective action on Agrobiodiversity
2 hours -
Grandad Sings: The 92-year-old TikTok sensation
3 hours -
‘No-one will win’: Canada, Mexico and China respond to Trump tariff threats
3 hours -
Kenya less open to visitors despite visa-free policy – report
3 hours -
New Mauritius PM has reservations about UK’s Chagos deal
3 hours -
Trump picks Covid lockdown critic to lead top health agency
4 hours -
Drake takes legal action over Kendrick Lamar’s Not Like Us
4 hours -
We’re too boring for kids for social media ban – LinkedIn tells court
4 hours -
Celebrating Prempeh, the Asantehene banished by the British
4 hours -
Nigeria boat accident leaves five dead, 20 missing
4 hours -
Election 2024: We trust EC to uphold democracy – Ghanaian Hungarian Business Council
5 hours