Saudi Aramco Pledges Billions in Dividends Despite Profit Drop
11.10.2023 By Tank Terminals - NEWS

November 11, 2023 [Oil Price]- Aramco will pay out almost £30bn in dividends for the third quarter, boosting 90 percent owner Saudi Arabia’s coffers.

 

Saudi Aramco (Aramco) has sustained hefty payouts to its investors, including the country’s government which owns 90 percent of the oil giant, despite a sharp slide in profits.

The world’s largest fossil fuel producer posted a 24 percent year-on-year dip in third quarter net profit, falling from $42.4bn (£34.4bn) to $32.6bn (£26.5bn).This follows lower oil production levels, with the country slashing output to prop up global prices alongside its OPEC allies, amid cooling demand and volatility across developed economies.

However, Aramco beat analyst estimates, with news agency Reuters predicting £25.8bn ($31.8bn) earnings through its median estimate from 12 forecasters.

Aramco confirmed it will pay out £23.9bn ($29.4bn) for the third quarter, boosting the Saudi government’s finances amid easing commodity markets following last year’s bumper rally fuelled by Russia’s invasion of Ukraine.

This consists of a base dividend of £15.8bn ($19.5bn) for the third quarter, alongside distribution of its performance-linked dividends with a £8.0bn ($9.9bn) payout in the fourth quarter.

The company is keeping output at around nine million barrels a day, about one million below the average over the past decade, in an effort to boost prices.

Oil prices are well below last year’s 14-year peak of $139 per barrel, but remain robust with Brent Crude and WTI Crude trading at $84 per barrel and $80 per barrel respectively.

However, the prospect of another record-breaking rally amid continued conflict between Israel and Hamas has not yet materialised, despite fears the conflict could spill into the wider region and threaten supplies.

Last year, Aramco posted a record annual net profit of £133.7bn ($161.1bn), the largest ever posted in the history of business.

Its downturn in earnings follow industry rivals posting steep declines in profits, but paying out more to shareholders, including UK-based firms Shell and BP.

Aramco aims to increase payouts further through a new performance-linked dividend which will link the distribution of profits to free cash flow.

 

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Saudi Arabia Could Cut the Price of its Flagship Crude for Asia
12.01.2023 - NEWS
December 1, 2023 [Oil Price]- Rising global crude stockpiles and weak demand could prompt Saudi A... Read More
3300-Km SoutH2 Hydrogen Pipeline Takes a Big Step Forward
12.01.2023 - NEWS
December 1, 2023 [PTJ]- A planned 3300-km dedicated hydrogen pipeline between Italy, Austria and ... Read More
Caspian Pipeline Consortium Resumes Oil Loadings at Black Sea Terminal
12.01.2023 - NEWS
December 1, 2023 [Yahoo Finance]- The Caspian Pipeline Consortium (CPC), a main export route for ... Read More
Japan Completes Construction of First Demonstration LCO2 Transport Vessel
12.01.2023 - NEWS
December 1, 2023 [Blogger]- A Japanese R&D project for liquid carbon dioxide transportation h... Read More