Solvay withdraws its full-year guidance and calls on all investors to contribute one third of final dividend to a new COVID-1...
April 09 2020 - 1:30AM
Solvay withdraws its full-year guidance and calls on all investors
to contribute one third of final dividend to a new COVID-19 Solvay
solidarity fund
Regulated information / inside information
Brussels, April 9, 2020, 7.30am CET – Solvay
today announced a financial update related to the COVID-19 global
pandemic. Due to heightened uncertainty and prolonged
duration of events, the Group is withdrawing its full year 2020
guidance issued on February 26, 2020. Further, Solvay
confirmed its dividend recommendation, highlighting the strength of
its cash flow generation, balance sheet, and liquidity.
Solvay also announced plans to launch a solidarity fund to support
employees and their dependents who experience hardship as a direct
result of COVID-19.
“During these challenging times, we are
mobilized and we are taking decisive action on matters that are
within our control, especially protecting our people, meeting
customer needs, and prioritizing cash generation and cost
reduction,” said Ilham Kadri, chief executive officer. “We
are deleveraging pension liabilities and are reducing our
capital expenditure by over €250 million in 2020. Our balance
sheet strength – with liquidity reserves of around €4 billion
comprised of cash and undrawn credit facilities – and our focus on
cash-flow generation gives me confidence that Solvay is able to
navigate this period effectively.” continued Ms. Kadri.
The company confirms that it will maintain its
total dividend recommendation of €3.75 gross per share, on the back
of the strong 2019 results announced on 26 February
2020. This leads to a final gross dividend of €2.25 per
share payable on May 20, 2020, which follows the interim dividend
payment in January 2020 of €1.50 per share.
Solvay also announced plans to establish a
Solvay solidarity fund to support Solvay employees and dependents
who may experience hardship related to COVID-19. Senior
management have unanimously volunteered to contribute 15% of their
salary for the remainder of the year, and the Group will
match all employee contributions. Upon management’s
recommendation, the Board approved and calls on all shareholders to
contribute one third of their final dividend (equivalent to €0.75
per share) towards that Fund.
“I want to thank Solvay’s employees for their
commitment to keeping our key activities operational and safe in
service of our customers during these challenging times. Solvay
products are more than ever essential to daily lives in a number of
markets such as healthcare, food and consumer
goods. I am confident that Solvay will emerge
stronger when economic conditions improve.” said Ms. Kadri.
- Press release in pdf format
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