How Aramco outperformed international oil companies

How Aramco outperformed international oil companies

Saudi Aramco released its second quarter earnings on Sunday and announced that it would hold its $75 billion dividend despite first half and second quarter net income having fallen by 50 percent and 73 percent respectively. This might have raised some eyebrows, but it made sense from a company perspective. It will pay out $18.75 billion for the second quarter in accordance with its schedule.When the oil giant listed on Tadawul (the Saudi stock exchange) last December in what was the world's largest initial public offering (IPO), it had promised that dividend to the market. Adhering to the dividend policy was important in terms of signaling to Saudi investors that the company was as good as its word.Prima facie, the second quarter net income came in low at $6.6 billion,