Aramco Boosts Payout to Government, Investors to $29 Billion - Bloomberg
Saudi Aramco raised its payout to investors and Saudi Arabia’s government by more than half, in a move that will help fill state coffers that had increasingly been expected to be in deficit this year.
The total payout will be $29.4 billion, including the performance-linked portion, up from a regular dividend of $18.8 billion a year ago, according to a statement from the company. Operating income dropped to $57 billion from $86 billion a year earlier, the company said in a statement.
Aramco is a crucial source of funding for the Saudi government which announced last week that its budget deficit widened in the second quarter after an increase in spending on social benefits and multi-billion dollar projects meant to diversify the economy from oil.
Saudi Aramco followed other international oil producers in boosting payouts to shareholders even as profits declined. Oil majors have seen profits drop as crude prices retreated from last year’s highs when commodity markets were roiled by Russia’s invasion of Ukraine.
“The second quarter of 2023 was characterized by continued global economic uncertainty and market volatility,” Chief Executive Officer Amin Nasser said on a call with reporters. “This obviously affected energy prices, yet Aramco delivered strong earnings thanks to our low cost production, high supply reliability and strong demand for our products.”
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