Aramco raised its dividend payment to investors and the Saudi government, totalling $31.07 billion in the fourth quarter, despite lower energy prices and production levels, Bloomberg reported on Sunday.
The company’s net income dropped by 25 per cent year-on-year due to reduced oil output. As the world’s largest crude oil exporter, Aramco’s dividends are crucial for the Saudi government’s income.
This is especially important as Crown Prince Mohammed bin Salman pursues costly projects like Neom and diversifies the economy away from oil.
The Saudi government is facing a budget deficit until 2026, leading to delays in economic transformation projects. Aramco was instructed to halt production capacity expansion to redirect spending.
Riyadh needs oil prices above $90 a barrel to meet spending plans, but Brent crude closed near $82 last week. The decrease in oil export revenue, that reached $248 billion last year, highlights Saudi Arabia’s reliance on high energy prices.
