Oil Giant Aramco Sticks With Dividend Even as Profit Crashes - Bloomberg

Oil Giant Aramco Sticks With Dividend Even as Profit Crashes - Bloomberg:

Saudi Arabia’s state-controlled oil giant pressed ahead with a plan to pay $75 billion in dividends this year despite crashing profit and a surge in debt, as the kingdom battles a widening budget deficit.

Saudi Aramco, which Apple Inc. recently dethroned as the world’s most valuable listed company, said net income in the three months ending in June was 24.6 billion riyals ($6.6 billion), down 73% from a year earlier, according to a statement. Aramco will pay a dividend of $18.75 billion for the quarter, most of it to the government, which owns around 98% of the company’s stock.

“Strong headwinds from reduced demand and lower oil prices are reflected in our second quarter results,” said Chief Executive Officer Amin Nasser. “We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies.” 

The results cap a turbulent period for the world’s biggest oil exporter. Prices briefly turned negative in the U.S. in April as virus lockdowns battered the global economy and Aramco slashed hundreds of jobs.