NEW YORK (AP) — National Oilwell Varco Inc. will slash its quarterly dividend and expects a revenue decline as persistently low oil prices cut into sales of drilling equipment and oil-field services.
The Houston-based company's board of directors approved slashing the dividend to 5 cents from 46 cents. The company also expects revenue of about $2.16 billion, marking a 20 percent drop from $2.7 billion in the fourth quarter of 2015.
"We believe reducing the dividend is in the best interest of our company and our shareholders as we continue to work our way toward the bottom of this severe down cycle," said Chairman, President and CEO Clay Williams.
Its shares dropped $1.60, or 5.5 percent, to $27.51 on midday trading Monday. They are down almost 50 percent over the past year.