Saudi Aramco increases dividend despite lower oil prices and profits

Saudi Aramco increases dividend despite lower oil prices and profits

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

State-owned Saudi Aramco boosted its dividend despite profits falling in 2023 to $121bn — down from the record $161bn set in 2022 — as lower oil prices and state-led production cuts weighed on performance.

The energy group said net income in the final three months of the year was in line with the average analyst estimates of $26.7bn. Although the full-year figure was down 24.7 per cent on 2022, profits still surpassed the $111bn reported in 2021 to be the second-highest ever.

Saudi Aramco said it would increase its quarterly dividend payment by 4 per cent year-on-year to $20.3bn and pay an additional performance-linked dividend of $10.8bn. The company introduced the performance dividend in the second quarter of last year to boost returns to shareholders, specifically the state and the Saudi sovereign wealth fund, which own 82 per cent and 16 per cent of the company respectively.

Aramco’s total dividends for the year rose 30 per cent on 2022 to $97.8bn.

The payout remains the most important source of revenue for Crown Prince Mohammed bin Salman, who wants to use oil profits to fund an ambitious programme to modernise the kingdom