Saudi Aramco posts 14% revenue drop, still aims to pay $124.3B in dividends

Saudi Aramco logo seen on top of the glass building, 3D illustrative image (Shutterstock)

ALBAWABA – Saudi Aramco saw a 2.04 percent boost in net profit reaching $27.27 billion for the first three months of this year, marking a 14.4 percent decline compared to first quarter of last year, however, the energy giant is persistent on giving the Saudi government and its stockholders $31 billion in quarterly dividends.

Aramco has reported $107.21 billion in overall revenue and $58.88 billion in overall operating profits financial quarter ended March 31st, according to the company’s statement, with Amin Nasser, president and CEO stating “Our first quarter performance reflects the resilience and strength of Aramco, reinforcing our position as a leading supplier of energy to economies, to industries and to people worldwide.”

Even with lowered net income, Aramco announced a $20.3 billion base dividend for the first three months of the year, in addition it plans to pay out its fourth performance-linked dividend of $10.8 billion in the second financial quarter, while maintaining total dividends of $124.3 billion for the year, a 30 percent boost compared to the previous year.

The Saudi kingdom, which owns 82% of the business, nevertheless depends mostly on the dividend from the biggest oil producer in the world for funding, particularly given the kingdom’s current budget shortfall and low oil prices while it works in diversifying its income away from oil.

“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 shareholder,” Nasser added in the company’s statement.

Provided by SyndiGate Media Inc. (Syndigate.info).