Saudi Aramco persists with $31 billion dividend amid Q1 earnings dip
Saudi Arabian oil giant Aramco reported a 14% decline in net income for the first quarter, with earnings falling to $27.3 billion from $31.9 billion in the same period last year. Despite the reduced profits, the company has announced its intention to pay out $31 billion in dividends for the quarter. This sum includes a base dividend of $20.3 billion and a performance-linked dividend of $10.8 billion.
The Saudi government, which owns approximately 82.2% of Aramco, depends on these dividends as a significant source of revenue, alongside royalties and taxes from the company. Aramco's financial performance also indicated a decrease in free cash flow to $22.8 billion and operating cash flow to $33.6 billion, compared to $39.6 billion in the previous year.
Despite the financial downturn, Aramco's President and CEO Amin Nasser expressed optimism about the company's strategic developments, particularly in expanding its gas operations and enhancing its downstream value chain. Aramco anticipates declaring total dividends of $124.3 billion in 2024.
