Houston oil-field service company National Oilwell Varco plans to stop paying the 5 cent dividend it established in 2016, the company said Wednesday.
NOV and numerous companies have cut their budgets and laid off employees as they try to weather the industry downturn ignited by the coronavirus pandemic.
“With the view that capital is becoming increasingly scarce and valuable within our industry, we believe that it is in the best long-term interest of NOV’s shareholders to suspend our dividend,” CEO Clay Williams said in a statement. “While NOV’s balance sheet and access to capital remain strong, the global economic shutdown has resulted in heightened uncertainty and an opaque outlook for the oilfield service industry."