Solvay announced that it is withdrawing its full year 2020 guidance issued in February due to heightened uncertainty and prolonged duration of events caused by the COVID-19 global pandemic.
The company has reduced its capital expenditure plans for the year by over €250 million ($273 million).
“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.
Further, Solvay confirmed its dividend recommendation, highlighting the strength of its cash flow generation, balance sheet, and liquidity.
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.