Saudi Aramco cuts its dividend by $10bn

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Saudi Armko has said that the first quarter’s profit is reduced, which has cut his dividend 10 billion dollars and reduces the main source of funds for Saudi Arabia’s budget in an uncertain view of oil prices.

The net income of the world’s largest oil company has dropped by 5 percent to $ 26 billion from a year ago. The average realized oil price was $ 76.30 per barrel, compared to $ 83 barrel in the same quarter last year.

Although the performance was better than some of its peers, including BP and Shell, whose first-time profit has been half-half, respectively, and has decreased by 20 percent respectively, respectively. Arms The total dividend of last year’s final quarter has been cut from $ 31 billion to $ 21.4 billion.

The group has already announced in March that this year its total payment will be about $ 85 billion, it will be sharply lower than $ 124 billion paid in 2024.

Paying less than ARMO dividends will increase the budget pressure of Saudi Arabia as government investment funds, like government investment funds, spend billions of dollars to diversify the economy away from dependence on oil revenue.

The economic diversification program, launched by Crown Prince Mohammed bin Salman, has several ambitious gigaprocks, including a future region called Newmoil on the northwest coast of the country.

The Ministry of Finance said on Monday that the state deficit in the first quarter stood at $ 6.6 billion in the first quarter, rising from $ 1.8 billion in 2021.

Amin Nasser, president and chief executive of Armco, says: “Global Trade Dynamics affects the fuel market in the first quarter of 2021, and economic uncertainty affects oil prices.”

Since the end of the quarter, the Saudi -led oil cartel after the US trade tariff and OPEC+has increased the price of more than 15 percent after the increase in the production of the year by increasing the production of the year by about $ 64.

Although low oil prices have put pressure on Saudi Arabia, US President Donald Trump welcomed those who want to reduce the cost for customers. He further argued that low oil prices would increase the pressure to end the war with Ukraine over Russia.

Trump, whose tariff has caused the market instability and helped reduce oil prices, to visit Saudi Arabia next week as part of a regional tour.

Armko did not give any direction on whether his dividend was further adjusted, or whether he had to spend his expenses, but mentioned that “disciplined capital planning and performing” was important during the instability of oil prices.

Riyadh is already recovering some projects and extending the other by extending others in a long time.

However, the country is facing a deadline to build infrastructure before hosting multiple events, including the Expo 2030 and 2034, in the FIFA World Cup.

The government and Saudi Arabia’s main resource funds, PIF, owns more than 97% of Armco together.

Despite the low oil prices, colleagues of Saudi Arabia and OPEC+ alliance are moving forward with the increase in production.

Earlier this month, eight OPEC+ members, including Saudi Arabia and Russia, said they would provide 411,000 barrels a day in June, the second monthly output increased.

Energy Consultancy Risstad George Lane said it was a “bombashle” decision at that time that reflects the team’s strategy change.