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The Markets
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The Markets
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Oil & Gas

Saudi Aramco maintains dividend and ups capex despite 23% drop in profit

Saudi Aramco (TADAWUL:2222)'s third-quarter profit was down 23% year-on-year, reflecting the pull-back from last year’s extraordinary crude price surge, though at some $32.6 billion for the three-month period the world’s largest oil producer’s profitability remained robust.

Indeed, sector analysts described the quarterly results as better than expected.

The state-backed company, which listed a minor portion of equity on Saudi Arabia’s Tadāwul exchange in Riyadh, is maintaining a $29.4 billion dividend payout.

It comes after Aramco reported a record $160 billion of profit last year.

Whilst Saudi-led OPEC this week committed to a production cut (of some 1 million barrels per day until the year’s end), Aramco is increasing capital expenditure as it continues a strategic international expansion including its first international LNG investment and its intended entry to South America.

“We intend to continue investing across the hydrocarbon chain, leveraging cutting-edge technologies to optimize our operations and advance the development of emerging energy solutions,” chief executive Amin Nasser said in a statement.

“It is an approach rooted in our belief that a balanced and realistic energy transition plan should consider the needs of all geographies, in order to avoid disparities between global energy consumers.”

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