LyondellBasell Industries has cut its quarterly dividend by nearly half, reducing the payout to $0.69 per share from $1.37, a 49.6% decrease. The move, announced Friday, lowers the annual dividend to $2.76. This action underscores severe cash-flow pressure stemming from a prolonged downturn in the chemicals sector.

Management had previously flagged constraints, including $1.8 billion needed to maintain the prior dividend and restrictions on share repurchases. While shares initially tumbled premarket, the decline was minimal at 0.1%. Analysts noted the cut was widely anticipated, as the prior rate was deemed unsustainable given the company's earnings over recent quarters.

The new payout, while reduced, still represents a high ratio compared to peers. The cut signals the industry's ongoing strain and is expected to trigger further selling pressure.