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OSLO, May 6 (Reuters) - Aker BP will cut its
quarterly dividend payments by two-thirds due to the COVID-19
pandemic and the fall in crude prices, the Norwegian oil firm
said on Wednesday after reporting first-quarter profits that
beat expectations.
Earnings before interest, tax, depreciation and amortization
(EBITDA) rose to $666 million in the quarter from $539 million a
year ago, outperforming a $617 million forecast in a Refinitiv
poll of analysts.
"The board has decided to retract the current dividend plan
in order to retain financial flexibility and position the
company for future value accretive organic and inorganic growth
opportunities," Aker BP said in a statement.
It will pay out $70.8 million in a quarterly dividend in
May, one-third of the company's previously guided amount, and
expects to keep the same level for the rest of the year, so that
overall payments in 2020 will amount to $425 million.
Aker BP, 30% owned by BP, had originally planned to
pay out $850 million this year, including a $212.5 million
payment made in February.
The dividend cut following similar reductions by local
rivals Equinor and Lundin Energy.
(Reporting by Nerijus Adomaitis, editing by Terje Solsvik)