Saudi Aramco maintains $31bn dividend despite drop in first-quarter profit
Saudi Aramco’s first-quarter revenue fell by about 4 per cent to $107.2 billion. Reuters
Saudi Aramco, the world’s largest oil-producing company, expects to pay $31 billion in dividends to the Saudi government and its shareholders despite reporting a lower profit in the first quarter on dwindling sales.
Net profit for the three months to the end of March declined by 14.4 per cent annually to $27.3 billion, the company said on Tuesday in a filing to the Tadawul stock exchange, where its shares are traded.
Revenue fell by about 4 per cent year on year to $107.2 billion, driven by “lower crude oil volume sold, partially offset by an increase in crude oil prices during the period”, the company said.
Aramco plans to pay a base dividend of $20.3 billion for the first quarter, followed by a performance-linked dividend distribution of $10.8 billion in the second quarter.
The Saudi government is the majority shareholder in Aramco, with a stake of 82.2 per cent, and relies heavily on the company’s payouts for the diversification of its economy.
“Our first-quarter performance reflects the resilience and strength of Aramco,” the company’s president and chief executive, Amin Nasser, said.
“We also continue to execute our long-term strategy, and in the first quarter, made significant progress on expanding our gas business and growing our globally integrated downstream value chain, while maintaining our focus on consistently delivering value for our shareholders.”