Aramco boosts dividend as Q2 profit drops 38%
PHOTO: FILE
Saudi state oil giant Aramco on Monday announced an additional near $10 billion dividend, most of which will go to the government, the first of several extra payouts on top of its expected $153 billion base dividend for 2022 and 2023.
Aramco will begin paying performance-linked dividends with a $9.87 billion payout in the third quarter, based on its full-year 2022 and first-half 2023 results, it said.
That is on top of a base dividend of about $19.5 billion for the second quarter, in line with the first quarter, which is paid regardless of performance - uncommon among listed companies.
The additional dividend, announced last quarter, will be paid over six quarters and is calculated based on 70% of Aramco’s free cash flow for 2022 and 2023, net of the base dividend and other amounts. The group’s shares, which have risen about 12% this year to 32.65 riyals, were up 1.1% at 1420 GMT on Monday.
Published in The Express Tribune, August 8th, 2023.
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