Norwegian salmon farmer SalMar will not pay out a promised NOK 2.37 billion (€205 million/$224 million) dividend to shareholders for 2019 due to uncertainty over the consequences Covid-19.
"The Board of Directors of SalMar is committed to taking the necessary steps to secure the company going forward, both operationally, strategically and financially," the company announced to its investors.
Not paying dividends is a proper measure to maintain the interests of both society and the company's shareholders, the company said.
Last week, markets around the world suffered sharp losses after President Donald Trump announced a travel ban from Europe and as increasingly draconian measures were taken globally to control the spread of the coronavirus.
Salmar shares fell 11 percent, losing $507 million (€462 million) off its value, as shares on the Oslo and Santiago stock exchanges took a hammering in one of the largest single-day drops in trading in more than three decades.
The ban puts salmon in a tricky spot, and analysts told IntraFish it spells bad news for the industry across the board.
The spreading coronavirus is an unprecedented global crisis. IntraFish is dedicated to bringing you coverage from around the globe with our 24/7 news team in Europe, North America and Asia.
Both subscribers and non-subscribers can follow along with briefs on our Live Updates page here, and catch more analysis on the latest episodes of the IntraFish Podcast.