Austria's OMV Cuts 2019 Dividend

Austrian energy company OMV said on July 28 it had cut its proposed dividend for 2019 from €2.00 to €1.75 ($2.05)/share because of the Covid-19 pandemic and the resulting collapse in oil prices. This means the dividend will be the same as the previous year.

"In an exceptionally difficult market environment, OMV has shown the stability and financial strength needed to be able to continuously offer our shareholders an attractive dividend," CEO Rainer Seele said in a statement.

The revision was proposed by OMV's executive board and will be presented to shareholders at an annual general meeting on September 29. 

OMV is due to publish its second-quarter results on July 29. In operational results released earlier this month, the company reported a 10.3% decline in oil and gas sales volumes to 434,000 barrels of oil equivalent/day, which it blamed on weaker demand.