Saudi Aramco, the world’s largest oil exporting company, announced that it will maintain its promise to deliver its $18.75 billion dividend payout Q1 even though the company recorded 25% drop in profit, according to Reuters.
Despite the 25% fall in Q1 profits, the company’s announced yearly payout of $75 billion is still on track based on the $18.75 billion dividend pay out for Q1. Total dividends of $13.4 billion were paid for Q4 of 2019.
However, Aramco’s cashflow remained strong compared to other oil majors, reflecting its strong balance sheet and resilience. Saudi Aramco’s President & CEO Amin Nasser said, “with net income of $16.7 billion, ROACE of 26.3%, free cash flow of $15.0 billion and a gearing ratio of -4.9%, our first quarter results were exceptionally strong due to our prudent balance sheet management and low-cost structure. Saudi Aramco declared a dividend of $18.75 billion for the first quarter. These unparalleled results demonstrate Saudi Aramco’s agility, strength and resilience across economic cycles.”