At a time when companies are adjusting their financial plans in response to economic challenges, Saudi Aramco, the state-owned oil giant, has demonstrated surprising resilience, the announced dividend payment highlights not only the company’s financial strength but also its commitment to long-term stability and growth.
Saudi Aramco to pay $31 billion in dividends to Saudi government and shareholders
Saudi Aramco expects to pay $31 billion in dividends to the Saudi government and its shareholders, despite reporting lower first-quarter profits on Tuesday, hurt by falling oil prices and volumes sold.
The Saudi government relies heavily on payments from Saudi Aramco
The Saudi government, which directly owns about 82.2% of Aramco, relies heavily on payments from the company, which also include royalties and taxes.
Aramco records a 14% decline in first quarter net income
Aramco reported a 14% decline in first-quarter net income to $27.3 billion, in line with analyst estimates and below $31.9 billion a year earlier, according to a company earnings release. .
Saudi Aramco expects to distribute a total of $124.3 billion in dividends in 2024
The company distributed basic dividends for the first quarter totaling $20.3 billion and a results-linked dividend of $10.8 billion for the second quarter. The company has stated that it expects to distribute a total of $124.3 billion in dividends in 2024, of which $43.1 billion will correspond to dividends linked to results.
Saudi Arabia seeks to diversify its economy away from crude oil
The Saudi kingdom, the world’s largest oil exporter, is spending billions of dollars to diversify its economy away from crude oil.
