Saudi Arabia’s state-owned oil giant Aramco has announced a significant decrease in its dividend payments, with nearly 30% lower payouts expected in 2025. The company’s 2024 profit reached $106.2 billion, a decline of over 12% from the previous year.
Aramco plans to invest $52-58 billion in capital expenditures for 2025, with an average realised oil price of $80.2. However, this investment could lead to a widening of Saudi Arabia’s budget deficit to 4% in 2025, according to analysts.
The move to cut dividends is part of Aramco’s strategy to maintain its financial health and invest in growth initiatives. The company has been focusing on increasing its production capacity and expanding into new markets, including renewable energy.
As the global energy industry continues to evolve, Aramco’s decisions will be closely watched by investors and analysts alike. With its significant investment plans and shifting focus towards green energy, the company is poised to play a major role in the region’s transformational plans.
Source: https://www.reuters.com/business/energy/aramco-expects-sharp-drop-2025-dividends-2024-profit-falls-2025-03-04