(Alliance News) - Aggreko PLC on Monday said to has decided to withdraw its recommendation to pay a final dividend, as well as its 2020 guidance amid uncertainty resulting from the Covid-19 outbreak.
Earlier in March, the supplier of temporary power generation and temperature control equipment had proposed a final dividend of 18.3p per share.
Aggreko said its decision to withdraw its proposed dividend payout comes as part of other measures to ensure it has strong liquidity and to preserve its cash flow and financial position throughout the period of uncertainty.
Other measures include a reduction in discretionary spend, hiring freezes, travel restrictions, and the limiting of its capital expenditure to what is required to fulfil secured orders and meet demand.
The FTSE 250-listed company said it has refinanced all its facilities due to mature in 2020. It also said it will explore the newly announced Covid Corporate Financing Facility from the Bank of England.
As at the end of February, Aggreko had liquidity of GBP606 million, it said.
The stock was trading 1.2% lower at 361.70 pence each on Monday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
