Portuguese energy and forecourt business Galp Energia cut its dividend payout by half on Monday after posting a 98% plunge in fourth-quarter net profit as the coronavirus pandemic hammered refining margins and output fell.
The company said it would propose a dividend of €0.35 per share for 2020, halving the €0.70 per share paid the previous year.
"The dividend cut reflects the impact from unexpected and unprecedented market conditions", Galp said in a statement, adding that it would target a 2021 payout of €0.50 per share.
Adjusted net profit fell to €3 million from €157 a year earlier, while earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 37% to €410 million.
For the full year, Galp swung to a loss of €42 million from a profit of €560 million in 2019, while EBITDA fell 34% to €1.57 billion.
The company said that due to the pandemic, it is incorporating "additional layers of prudency given the uncertain macro circumstances", and expects EBITDA of between €1.6 billion and €1.8 billion in 2021.
Net profit and EBITDA has been adjusted to reflect changes in the company's stocks of crude.
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