Saudi Aramco to pay US$18.75bn dividend in face of 25% profit slump
Saudi Aramco has revealed a 25% slump in quarterly profit due to the collapsed oil prices and weak demand amid the coronavirus pandemic.
Nonetheless, the Saudi state firm and the world’s largest oiler was still able to flex – confirming US$18.75bn of dividends will be paid for quarter ended 31 March 2020.
Notably though the dividend represents more than 100% of first quarter net income which was reported at US$16.7bn and free cash flow which was marked at US$15bn.
“We have delivered solid earnings with robust free cash flow, despite weak energy demand and low oil prices,” said Amin Nasser, Aramco president and chief executive.
“We remain committed to the safety of our people while delivering on our long-term value creation strategy for all of our shareholders.”
Nasser added: “Looking ahead to the remainder of 2020, we expect the impact of the COVID-19 pandemic on global energy demand and oil prices to weigh on our earnings.
“We continue to reinforce the business during this period by reducing our capex and driving operational excellence. Longer term we remain confident that demand for energy will rebound as global economies recover.”