Williams Reduces Dividend by 95%

Williams Cos., the No. 2 U.S. pipeline owner, slashed its dividend by 95% after an energy-trading slump led to a second-quarter loss. The stock plunged 61% to a 20-year low.

The quarterly dividend was reduced by 19 cents to a penny after Williams had a per-share loss of as much as 73 cents, the company said. It will report full second-quarter results Monday.

The dividend cut will save $95 million this quarter, the company said.

Shares of Tulsa, Okla.-based Williams fell $3.15 to $2.01 on the NYSE.

After the close of regular trading, Fitch Ratings cut its rating on Williams’ senior unsecured debt two notches to BB-plus, the highest “junk” rating.