National Oilwell Varco (NAV) will suspend its quarterly dividend in 2020. The drilling company last raised its dividend in 2014 and already cut the quarterly payment by 89.1 percent in 2016.

In a press release dated May 20, 2020 the company announced the dividend suspension: “With the view that capital is becoming increasingly scarce and valuable within our industry, we believe that it is in the best long-term interest of NOV’s shareholders to suspend our dividend,” commented Clay Williams, Chairman, President, and CEO. “While NOV’s balance sheet and access to capital remain strong, the global economic shutdown has resulted in heightened uncertainty and an opaque outlook for the oilfield service industry. Thus, we feel that it is prudent to preserve the $77 million per year of cashflow from the dividend while we navigate through present market challenges, reduce costs, improve efficiencies, and position the Company for the eventual market recovery.”

National Oilwell Varco, Inc. is an independent provider of equipment and technology to the upstream oil and gas industry. The company serves major-diversified, national, and independent service companies; contractors; and oil and gas operators around the world. The company operates under three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. National Oilwell Varco had been paying a quarterly dividend every year since 2009 before the suspension was announced in May 2020.