The Saudi oil giant, Aramco, said Tuesday that he hopes declare total dividends of $ 85.4 billion in 2025, a fall of almost 30 percent of payments in 2024, since he faced lower sales and higher costs.
Aramco paid around $ 124.25 billion in dividends in 2024 and had $ 97.78 billion in payments in 2023.
Aramco is the main source of income for the Vision 2030 Reform Agenda of the heir prince Mohammed Bin Salman, whose objective is to remodel the economy relative to the raw of the Gulf kingdom.
Very high energy prices after the invasion of Ukraine in Russia allowed Aramco to publish record profits in 2022, before they submerge for 25PC in 2023.
In an attempt to underpin prices, Aramco reduced production in 500,000 barrels per day in April 2023 as part of a joint movement with the OPEC+ Oil Producers Alliance.
Aramco continued with an additional cut of one million BPD in June 2023, agreeing last December with other OPEC+ countries to extend the supply cut until March.
The dividends of Aramco by 2024 included around $ 43.1 billion in dividends linked to yield, a mechanism introduced in 2023 in addition to the base dividends that are paid independently of the results.
The company declared $ 200 million in dividends linked to the yield that will be paid in the first quarter of 2025, a strong decrease of the almost $ 10.8 billion declared by each quarter of 2024.
Aramco reported a net gain of $ 106.2 billion in 2024, below $ 121.3bn in 2023.
“The decrease was mainly driven by lower income and other income related to sales, higher operating costs, as well as lower finances and other income. This was partially compensated by lower income taxes and Zakat, ”said Aramco in a presentation of the stock exchange. ($ 1 = 3,7503 riyals)
‘Not necessarily rolling in petrodollars’
Aramco is not the only largest energy with lower profits. The shell of Great Britain saw a 17 percent drop last year and totalenergies of France registered a 26pc decrease.
A global surplus, the replacement production capacity and uncertain demand, together with the unpredictable policy signals of the president of the United States, Donald Trump, are weighing prices, analysts said.
“The prices have remained lower than they would like to see the gulf governments as Saudi Arabia,” said Robert Mogielnicki, scholar of senior resident of the Institute of the States of the Arab Gulf and attached assistant professor at the University of Georgetown.
“The foundations of the energy market are still manageable, but the Saudi are not necessarily rolling in more petrodollars than they know what to do.”
Saudi Arabia, looking at a future after oil, is in the middle of a luxurious expense plan for tourists and investments to the largest economy in the Middle East.
The main one of a single project single is Neom, a new futuristic city of $ 500 billion in the desert, the 2034 World Cup and an important new airport for Riyadh.
Amena Bakr, director of Middle East, in the Kpler commercial intelligence company, said that although the feeling of the market was containing prices, Saudi could adjust its expenses as necessary.
“In general, the OPEC+ policy has managed to adjust the markets in terms of foundations, but what is weighing prices is a negative feeling of the market,” he told AFP.
“It is known that Saudi Arabia adjusts its budget depending on market conditions, and the kingdom is not aimed at a certain price of oil … projects and plans can be adjusted on the road.”
