An worker of the ‘Complete’ oil refinery stands in entrance of a big tank with the corporate’s brand in Leuna, Germany.
Waltraud Grubitzsch | image alliance by way of One other Billionaire Information
Complete on Tuesday posted a major fall in first-quarter web revenue, as oil costs tumbled to historic lows following a drop-off in demand because of the coronavirus disaster.
The French power main reported Tuesday that first-quarter web revenue got here in at $1.8 billion, down from $2.Eight billion over the identical interval final yr, reflecting a fall of 35%.
Analysts polled by Refinitiv had anticipated first-quarter web revenue to return in at $1.Four billion.
The corporate’s board additionally confirmed that its first-quarter dividend could be 0.66 euros per share, steady on the identical interval final yr. It proposed an choice to obtain the 2019 closing dividend in money or in new shares of the corporate with a reduction, topic to approval on the shareholders’ assembly on Might 29.
“The Group is dealing with distinctive circumstances,” Patrick Pouyanne, CEO of Complete, stated in an announcement on Tuesday.
Pouyanne, who will take a 25% fastened wage pay reduce for the rest of the yr, underscored two main challenges via the primary quarter: “The Covid-19 well being disaster, which is affecting the world financial system and creating main uncertainties, and the oil market disaster, with the sharp drop in oil costs since March.”
Shares of Complete are down greater than 38% year-to-date.
It comes as a worldwide public well being disaster continues to hit power markets laborious, leading to a world awash with oil however with few locations to place it.
The Covid-19 outbreak has meant nations throughout the globe have successfully needed to shut down, with many governments imposing draconian restrictions on the each day lives of billions of individuals. It has led to a unprecedented demand shock in power markets, with worldwide mobility introduced near a standstill.
Worldwide benchmark Brent crude traded at $28.35 per barrel throughout morning offers, up over 4%, whereas U.S. West Texas Intermediate stood at $21.72, greater than 6% larger. Brent futures prolonged positive aspects for the sixth consecutive session and WTI futures have been larger for the fifth day amid heightened expectations that gas demand would quickly begin to get well.
Nonetheless, each benchmarks stay round 60% decrease because the begin of the yr.
Final week, oil big Royal Dutch Shell slashed its dividend to shareholders for the primary time since World Battle II.
The board of the Anglo-Dutch power firm defined the choice was taken to offer the agency with larger monetary flexibility given the danger of a chronic interval of financial uncertainty, weaker commodity costs, larger volatility and an unsure demand outlook.
U.Okay.-based power big BP, in addition to U.S. majors Chevron and Exxon Mobil, all maintained their dividend to shareholders via the primary three months of the yr.