Inter Pipeline Ltd. is reducing its dividend by more than 70 per cent and suspending its dividend reinvestment plan as it deals with the drop in energy prices and the COVID-19 pandemic.
The company says it will now pay a monthly dividend of four cents per share, down from its earlier payment of 14.25 cents per share.
Inter-Pipeline is also cutting executive salaries starting April 1.
The company’s president and chief executive salary will be reduced by 20 per cent, while all other executive salaries to be reduced by 10 per cent.
The cash retainer paid to the board of directors will be reduced by 15 per cent.
Inter Pipeline is also suspending the sale process of its bulk liquid storage businesses in Europe with operations in the U.K., Denmark, Sweden, Germany, Netherlands and Ireland.
“This is clearly not the right environment to pursue and complete a major pan-European transaction, though we may revisit this process at a later date,” Christian Bayle, Inter Pipeline’s president and chief executive, said in a statement.