#Saudi Oil Windfall Tops $65 Billion Even Without Dividend Hike - Bloomberg

Saudi Oil Windfall Tops $65 Billion Even Without Dividend Hike - Bloomberg

The Saudi government’s oil income almost doubled in the second quarter even as state-controlled producer Aramco held dividends unchanged.

The oil giant made payments to the government -- its 94% shareholder -- of more than $65 billion in the period, up from $35 a year earlier, according to financial statements released Monday. That’s a combination of dividends, income taxes and royalties on oil production.

Despite efforts to diversify the economy, Saudi Arabia’s crude is still the major source of government revenue. Soaring prices are set to give the country its first budget surplus in almost a decade, even without Aramco boosting shareholder payouts, most of which go to the government.

Under a system introduced in January 2020, Aramco pays a royalty of 80% on Brent crude prices above $100 a barrel, and 45% when oil’s at $70 to $100. Benchmark futures jumped above $100 a barrel in March following Russia’s invasion of Ukraine, and stayed above or near that level until the end of July.